The Bank of East Asia

Investment Services

New Offers:

To celebrate our 100th anniversay, we offer new and existing FX and Precious Metal Margin Trading Account customers to get a 100% spread waiver for FX and Gold Margin trading through phone trading1,7.
Promotional Period: The 23rd day of each month in November 2018 to December 2019 that is a business day, from 08:00 to 24:005.  

Product Information 

Our Foreign Exchange (“FX”) and Precious Metal Margin Trading services enable you to diversify your portfolio and allow for capital liquidity according to your investment strategies. You can capture investment opportunities on the go through multiple trading channels, including mobile and internet trading platforms1,7.

The interest rate spread of USD/CNH is narrowed to as low as 1.5% until further notice. Interest rate spread is subject to change of market condition.

 FX Margin Trading

Trade in a range of currencies and cross-currency combinations:

10 Major Currencies (USD pairs)Minimum Contract Size
GBP
EUR
AUD
NZD
GBP
EUR
AUD
NZD
50,000
CAD
CHF
JPY
SGD
HKD
CNH
USD
 
21 Cross-Currency PairsMinimum Contract Size
EUR/JPY
EUR/CHF
EUR/GBP
EUR/AUD
EUR/CAD
EUR/NZD
EUR 50,000
GBP/JPY
GBP/AUD
GBP/CAD
GBP/NZD
GBP/CHF
GBP
AUD/JPY
AUD/NZD
AUD/CAD
AUD/CHF
AUD
NZD/JPY
NZD/CAD
NZD/CHF
NZD
CAD/JPY
CAD/CHF
CAD
CHF/JPY CHF
 

FX Option Margin Trading

An FX Option Trading contract allows the option buyer the right, but not the obligation, to buy or sell a pre-defined amount of one currency against another, at a pre-defined exchange rate known as the strike price, on the option's expiration date.

  • Leveraged trading: 10 times2,7 the value of your margin deposit
  • Minimum contract amount: US$100,000
  • Spot price: FX currency price as traded in the spot market
  • Contract period: 1 week to 12 months
  • Option premium: The price of an option that the buyer must pay the seller in order to compensate the seller for the risk they bear
  • Option contract: Major currencies (AUD, CAD, CHF, EUR, GBP, JPY, NZD, etc.) against the USD and other cross currencies*
  • Settlement arrangement: The expiry time of a contract is 2:00pm (HK time) on the expiry date+
  • Call option: A call option buyer has the right to buy the underlying currency pair
  • Put option: A put option buyer has the right to sell the underlying currency pair
  • European-style option: The option 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.
+ If a contract has another expiry time, this will be specified in the bank statement.

Precious Metal Margin Trading

You can enjoy spot gold trading spread as low as US$0.5 per oz and minimum trading amount of just 50 oz  through our mobile or internet trading platforms. Trades will be settled in cash and no physical delivery is required.

 

Features

  • Multiple trading channels:
    • BEA App  
    • BEA Cyberbanking
    • Manned trading hotline
  • Flexible collateral (time deposit and/or cash deposit)
  • wide selection of currencies for collateral, including USD, HKD, EUR, GBP, JPY, CHF, AUD, NZD, CAD, RMB, SGD, and THB#
  • Types of conditional orders3:
    • Limit/Stop loss order
    • "One-cancels-the-other" order
    • "If done then single" order/"If done then one-cancels-the-other" order
  • Choices of tenor:
    • Today order
    • Good till Friday
    • Good till cancelled
  • Position locking service

#A 10% haircut will be applied to the valuation of a THB deposit; this haircut may vary according to the Bank's discretion.

Advantages of Mobile and Internet Trading Platforms

  • Easy to complete transactions, set currency pairs display orders, and switch between spot deals and orders  
  • Customised preset deal amount  
  • Easily place new orders, amend or cancel orders, and check order status
  • Instantly check position status, transaction record, account balance and equity
  • SMS and e-mail notifications for order executions and price alerts
  • Real-time financial news and information
  • Free real-time streaming quotes and ProSticks charts with technical indicators
  • 24-hour FX & Precious Metal Trading Services

Privileges

  • Leverage as high as 16 times your margin deposit 2,7
  • No commission on transactions

Catch investment opportunities by opening a Foreign Exchange and Precious Metal Margin Trading Services Account!

Anyone aged 18 years or above can open an account with a minimum deposit of US$5,000 or its equivalent7 at their nearest BEA branch.

 

Important Notes:
    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 ("the Bank") reserves the right to close a position in case of an inadequate margin deposit. You are required to top up the margin deposit when it has dropped below 5% of the outstanding position. The Bank is not responsible for notifying customers in such situations. When a margin deposit has dropped to 3% of the outstanding position, the Bank 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 review and approval by the Bank.
    3. Execution of an order at a specified price cannot be guaranteed due to unexpected market fluctuations and other circumstances which are beyond ontrol by the Bank. Cancellation or amendment of orders and all dealing activities should be conducted through the designated channels. The Bank is not responsible for adjusting a customer's order against his/her transaction.
    4. The trading facility line is subject to review and approval by the Bank.
    5. The Bank reserves the sole right to revise or cancel all or any of the offers and/or amend or alter these Terms and Conditions at any time without prior notice. In the event of any dispute, the decision of the Bank shall be final and conclusive.
    6. Should there be any discrepancies between the English verion and Chinese version of these Terms and Conditions, the English version shall apply and prevail.
    7. Risk Disclosure Statements

      Investment involves risks. You should recognise that the prices of precious metals and foreign exchange rates fluctuate, and may go down as well as up. Past performance is not indicative of future performance. It is possible that you may lose some or all of your investment as a result of entering into precious metal and/or leveraged foreign exchange contracts.

      Risk of Trading in Leveraged Foreign Exchange and Precious Metal Contracts
      The risk of loss in leveraged foreign exchange and precious metal trading can be substantial. You may sustain losses in excess of your initial margin funds. Placing contingent orders, such as "stop-loss" or "stop-limit" orders, will not necessarily limit losses to the intended amounts. Market conditions may make it impossible to execute such orders. If the amount or market value of the margins is equal to or falls below the top-up margin level, you are required forthwith, without notice or demand by the Bank, to reduce the open position or deposit additional margin funds. If the margin falls below the close-out margin level, the Bank shall be entitled, without prior notice, to liquidate your position. You will remain liable for any resulting deficit in your account. You should therefore carefully consider whether such trading is suitable for you in light of your own financial position and investment objectives.

      Risk of Margin Trading
      The risk of loss in financing a transaction by deposit of collateral is significant. You may sustain losses in excess of your cash and any other assets deposited as collateral with the Bank. Market conditions may make it impossible to execute contingent orders, such as "stop-loss" or "stop-limit" orders. If the amount or market value of the margins is equal to or falls below the top-up margin level, you are required forthwith, without notice or demand by the Bank, to reduce the open position or make additional margin deposits or interest payments. If the margin falls below the close-out margin level, the Bank shall be entitled, without prior notice, to close out part or all of the outstanding transactions and your collateral may be liquidated without your consent. Moreover, you will remain liable for any resulting deficit in your account and interest charged on your account. You should therefore carefully consider whether such a financing arrangement is suitable for you in light of your own financial position and investment objectives.

      Risk of Electronic Trading
      Trading on an electronic trading system may differ from trading on other electronic trading systems. If you undertake transactions on an electronic trading system, you will be exposed to risks associated with the system including the failure of hardware and software. The result of any system failure may be that your order is either not executed according to your instruction or is not executed at all.

      Effect of Leverage
      Trading in leveraged foreign exchange carries a high degree of risk. Transactions are "leveraged" or "geared", meaning that the initial margin is small relative to the value of the foreign exchange contract. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit: this may work against you as well as for you. You may sustain a total loss of your initial margin funds and any additional funds deposited with the Bank to maintain your position. If the market value of the margins is equal to or falls below the top-up margin level, you are required forthwith, without notice or demand from the Bank, to pay additional funds to maintain your position. If you fail to pay additional funds, your position may be liquidated at a loss without notice from the Bank and you will be liable for any resulting deficit.

      No Physical Delivery of any Precious Metal
      You should note that you will have no right to require delivery of any precious metal in any physical form in Hong Kong or elsewhere related to any precious metal transaction. You do not have any rights to, or ownership or possession of any physical precious metal under any transaction.

      Volatility of Precious Metal Prices
      Precious metal prices are volatile and may sometimes fluctuate dramatically. You should understand that the price of a precious metal may go up and down. In the worst case, losses may be incurred as a result of entering into a precious metal transaction.

      Credit Risk of the Bank
      When you invest in any trade under a Foreign Exchange and Precious Metal Margin Trading Services Account, you are relying on the Bank’s creditworthiness and that of no other person. If the Bank becomes insolvent or defaults on its obligations under the transaction, you can only claim as the Bank’s unsecured creditor. In the worst case scenario, you may lose your entire investment irrespective of the terms of the transaction.

      Conflicts of Interest
      Potential and actual conflicts of interest may arise from the different roles played by the Bank and the Bank’s subsidiaries and affiliates in connection with the transaction, and the economic interests in each role may be adverse to your interest under the transaction.

      Risk Relating to Onshore RMB (CNY)
      You should note that the value of the renminbi (RMB) against other currencies fluctuates and will be affected by, amongst other things, control measures taken by the government of the People’s Republic of China (“PRC”), which may adversely affect your investments under foreign exchange margin trading. You may suffer exchange rate loss due to such fluctuation if you convert RMB into other currencies (including Hong Kong dollars).

      Risk Relating to Offshore RMB (CNH)
      The RMB is currently not completely freely convertible. Offers can be made to personal customers to conduct conversion of RMB using offshore rates. It may occasionally not be possible to conduct conversion fully or immediately as this is subject to the RMB’s position and market conditions at that time. You should understand and consider the possible impact this may have on the liquidity of RMB funds. The exchange rate for the offshore RMB market in Hong Kong may be at a premium or discount when compared to the exchange rate for the onshore RMB market, and there may be significant bid and offer spreads.

Remarks
  • This material is for general information only and is intended only for distribution to selected customers of the Bank. It does not constitute an offer, or an invitation to offer, or a recommendation to enter into any transaction.
  • The contents of this material have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to this leaflet. If you are uncertain of or do not understand the nature of and the risks involved in leveraged foreign exchange and precious metal trading, you should seek independent professional advice.

24-hour access to FX trading (HK time)*
  • FX & Precious Metals:
    Monday 7:00am – Saturday 3:30am
  • FX Options:
    Monday to Friday 9:00am – 3:00am of the next day

*Please call the FX Margin Hotline for enquiries of trading hours on public holidays.

FX Margin Hotline: 2211 1688
www.hkbea.com/FXmargin
Email: FX-Margin-Enquiry@hkbea.com