Foreign Exchange Margin and Option Margin Trading Services

Monitor the market, and maximise your returns Capture exciting investment opportunities in the ever-changing  foreign exchange market BEA's Cyberbanking platform now offers special advantages when investing in foreign currencies, helping you capture profitable (1) investment opportunities whether the market is trending or stuck in a range.

Advantages

  Narrower trading spread
  Free streaming real time quotations
  Free access to Prosticks charts with technical indicators
  Real-time financial news and information, helping you discover more investment
     opportunities
  Place new orders, amend or cancel orders, and check your latest order status
  Check your account balance, position status, and transaction record
  No commission on transactions
  Trade foreign exchange ("FX") options at the same time for better investment
     opportunities
  SMS and e-mail notification for order executions and price alerts

Other Features:

	Trade FX & FX options through two channels:
	1. Manned trading hotline  2. Electronic trading platform via BEA Cyberbanking
	Leveraged trading - as high as 16 times your margin deposit (2)
	Extended trading hours:
	Monday to Friday (HK time)   7:00 a.m. - 3:30 a.m.  (FX) 9:00 a.m. - 3:00 a.m. (Options) Public holidays Please contact the FX Margin Hotline on (852) 2211 1688
	Various types of conditional orders(3):
	Limit / Stop loss order  One-cancels-the-other order  If done then single order / If done then one-cancels-the-other order
	Various choices of tenor
	Today order  Good till Friday  Good till Cancel
	Position locking service
	Enjoy privacy and complete confidentiality when you enter your account details and PIN when making transactions by telephone.
	Detailed confirmations and statements are provided for reconciliation.
	Enjoy a wide selection of currencies to use as collateral for margin deposits, allowing you to earn interest, including USD, HKD, EUR, GBP, JPY, CHF, AUD, NZD, CAD, CNY, SGD, and THB*
	*A 10% haircut will be applied to the valuation of a THB deposit, the variation of this haircut is subject to the Bank's discretion.

Extensive Currency Choices and Cross-Currency Combinations

You can trade in various currencies:

7 Currencies against USD

Currency	Minimum Contract Size Per Deal
Pound Sterling	GBP 50,000
Euro	EUR 50,000
Australian Dollar	AUD 50,000
New Zealand Dollar	NZD 50,000
Canadian Dollar	USD 50,000
Swiss Franc	USD 50,000
Japanese Yen	USD 50,000

11 Cross-currency Pairs

Cross-currency	Minimum Contract Size Per Deal
EUR/JPY	EUR 50,000
EUR/CHF	EUR 50,000
EUR/GBP	EUR 50,000
GBP/JPY	GBP 50,000
AUD/JPY	AUD 50,000
AUD/NZD	AUD 50,000
NZD/JPY	NZD 50,000
CHF/JPY	CHF 50,000
CAD/JPY	CAD 50,000
AUD/CAD	AUD 50,000
NZD/CAD	NZD 50,000

Foreign Exchange Option Margin Trading

A Foreign Exchange Option Margin Trading contract allows the option buyer to have the right, but not the obligation, to buy or sell a pre-defined amount of a currency against another, at a pre-defined exchange rate known as the strike price, at the end of a pre-defined period ends on the option expiration date.

Foreign Exchange Option Margin Trading Features

Leveraged trading: 10 times(2) the value of your margin deposit  Minimum contract amount:US$250,000 or 250,000 of the first currency            amount (where the lower amount applies)  Spot price: FX currency price traded in the spot market  Contract tenor: 1 week to 12 months  Option premium: The price of an option that the option buyer will have to pay       the option seller in order to compensate the option seller's risk assumption  Option contract: Major currencies against the USD (AUD, CAD, CHF, EUR,      GBP, JPY, NZD, and other cross currencies*   Settlement arrangement: The expiry time of the contract is 2:00pm (HK time)      on the expiry date  Call option: A call option buyer will have the right to buy the underlying      currency pair  Put option: A put option buyer will have the right to sell the underlying       currency  pair  European-style option: An option that can be exercised only on the expiration      date  "Plain Vanilla" option: A simple option that allows the buyer to choose to       exercise or not to exercise on the expiration date *Cross currencies are determined and amended by the Bank from time to time.

Account Operation

Anyone aged 18 years or above can open a Foreign Exchange Margin and Option Margin Account ar BEA with a deposit of US$5,000 or its equivalent (4).

Enquiries

For full details, please visit your nearest BEA location. With nearly 140 branches and SupremeGold Centres, BEA operates one of the largest banking networks in Hong Kong.
FX Margin Hotline (852) 2211 1688

Remarks

1.	Participants should be aware of the risks associated with adverse movements in exchange rates.  It is therefore advisable that participants have a good understanding of the foreign exchange market and be able to keep abreast of market developments.  The Bank of East Asia, Limited ("BEA") reserves the right to close a position in case of inadequate margin deposit. When the margin deposit has dropped below 5% of the outstanding position, customers are required to top up the deposits.  BEA is not responsible for notifying customers.  When a margin deposit has dropped to 3% of the outstanding position, BEA can reduce the gross open position in whole or in part by closing out the outstanding FX contracts in accordance with the size of the floating loss of the FX contracts in descending order, with the largest loss being the first.
2.	The leverage ratio is subject to BEA's review and approval.
3.	Execution of an order at specified price cannot be guaranteed due to unexpected market fluctuations and other circumstances which are beyond BEA's control. Cancellation or amendment of orders and all dealing activities should be conducted through the designated channels. BEA is not responsible for adjusting a customer's order against his/her transaction. If customer does not maintain sufficient collateral for his/her open-position order, the open-position order will be cancelled automatically without notice when the market price reaches the order rate.
4.	The trading facility line is subject to BEA's review and approval.

Risk Disclosure

The risk of loss in leveraged exchange trading / option trading can be substantial. You may sustain losses in excess of your initial margin funds. Placing contigent orders, such as stop-loss or stop-limit ordres, will not necessarily limit losses to the intended amounts. Market conditions may make it impossible to execute such orders. You may be called upon at short notice to deposit additional margin funds. If the required funds are not provided with the prescribed time, your position may be liquidated. You will remain liable for you in any resulting deficit in you account. You should therfore carefully consider whether such trading is suitable for you in light of your own financial position and investment objectives. If you trade options you should inform yourself of exercise and expiration procedures and your rights and obligations upon exercise or expiry.

Effect of Leverage

Trading in leveraged foreign exchange carries a high degree of risk. The amount of initial margin is small relative to the value of the foreign exchange contract so that the transactions are "leveraged" or "geared". A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposited or will have to deposit; this may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited with the firm to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. may be liquidated at a loss and you will be liable for any resulting deficit.

Note:	This pamphlet is for general information only and is intended only for distribution to selected BEA customers.  It does not constitute an offer, or an invitation to offer, or a recommendation to enter into any transaction. BEA reserves the right to revise the features of the product at any time without prior notice.

FX Margin Hotline: (852) 2211 1688