Money has a tendency to lose its value over time because the price of goods and services has an upward tendency. This is called inflation. Here are some factors that could eat away your money:
Therefore it is crucial that you have a financial plan to protect your future and to put your money where it generates reasonable returns to meet your needs.
The sooner you start, the better. The example below shows the difference in accumulative savings between Mr. Early and Mr. Late, who start saving at different times.
Mr. Early saves for 10 years and then stops. Mr. Late starts 10 years later and also saves for 10 years. But Mr. Early gets 63% more than Mr. Late (based upon 5% annual growth, not taking into account annual inflation).
A: You can choose from a range of different financial tools:
Traditionally, savings or time deposits are the safest place to put your money, but often offer lower rates of interest. Investment products usually offer potentially higher returns but with a greater risk.
You can open an investment account online in most circumstances. You must maintain a personal banking account with HSBC before s/he ca open an investment account online.
Alternatively you can also open an investment account at our branches. If you wish to open a joint account, you can only do so at our branches.
Opening an investment account does not incur any fees. However, there may be other account fees applicable depending on the nature of the account and the products held in the account. Besides, there may be transaction fees involved when you buy or sell investment products. Please consult our staff should you have any queries.
Bonds are credit notes issued by governments, corporations or other issuers to bondholders. As a bondholder, you are extending credit to these issuers and they are obligated to repay the redemption value of the bond upon maturity, as well as a rate of interest during the life of the bond. There are many types of bonds from different issuers that vary in their terms. Some examples include the fixed rate bond, floating rate bond, zero coupon bond and convertible bond as well as Certificates of Deposit (CDs).
In general, bonds and CDs offer comparatively safe returns. At HSBC, we currently offer bonds and CDs issued by governments including PRC, US and HKSAR, local quasigovernment bodies, supranationals and well-known corporations around the world denominated in major currencies. There is also a wide selection of tenors or terms from which to choose, i.e., from 1 to 30 years with various benchmark yields. The minimum investment amount can be as low as HKD10,000.
HSBC offers you a full range of investment grade or equivalent bonds including RMB dimsum bonds, Government Bonds and Corporate Bonds with wide ranges of major currencies selections and tenors ranging from 1 to 30 years. Investment amount can be as low as HKD10,000.
Bonds from HSBC can be categorised by:
HSBC lets you invest in a wide range of bonds with a minimum investment amount of HK$10,000++.
++Please note the minimum and incremental investment amount varies from bond to bond. Please consult us for more details.
You can now trade bonds via HSBC Internet Banking. Our one-stop online platform offers bond IPO subscription and secondary market trading services.
If you already have an HSBC Investment Services/Securities account, you can simply log on and execute your bond order with us. We also offer bond trading services through our branches and investment phonebanking service. To open an Investment Services/Securities account, simply visit www.hsbc.com.hk any time or visit any HSBC branch in Hong Kong.
HSBC will repurchase the bonds purchased through us based on the prevailing market price under normal circumstances thus you may not hold the bonds until maturity. Customer's selling price may differ from the original buying price due to changes in market condition. You could lose part or all of your investment if you choose to sell the bonds prior to maturity.
HSBC can offer you a loan at preferential rates of up to 70% the value of your bonds. Please consult us for details.
All bonds purchased through HSBC are under our custody and nominee service. So just sit back and we'll ensure all interest earned is credited to your settlement account once the payment is received from the relevant custodian on or after the coupon payment date.
They refer to the ability of the bond issuer to repay the value and interest to bondholders. Moody's and Standard and Poor's are the best known international credit rating agencies. Ratings are assigned based on the bond issuer's financial strength and past record of debt repayment. In general, the higher the credit rating, the lower the risk of default and the interest offered.
|A||A||Upper medium quality|
|B||B||Low grade, speculative|
|Caa||CCC||Low grade, highly speculative|
|Ca||CC||Low grade, most speculative|
|Redemption at maturity||Waived|
(into or out of HSBC)
|Through Central Money Market Unit (CMU): HKD500 per note/bond per transfer
Through Euroclear/other overseas clearing houses/bank: HKD1,000 per note/bond per transfer
Bonds involves the following risks (including but not limited to):
Interest Rate Risks
Yes, HSBC will provide contract note to you in every Bond transaction and you can also find your Bond investment record in the monthly consolidated statement (if applicable).
According to the iBond Issue Circular, if a customer applied iBond via placing Bank, the allotted iBond will be held through Central Moneymarkets Units (CMU), a debt securities custodian. The allotted iBond can be traded at Over-the Counter (OTC) through the Bank's Bond Trading Services.
You can sell the allotted iBond instantly during trading hours through our OTC trading service, Online Bond Trading Services (click "Investments" on internet banking, then "Bonds/Certificates of Deposit", click "My portfolio"). You can also call our phonebanking or visit any branches for selling of iBond through our OTC Bond Trading Service. No extra fees and charges applied.
You need to transfer the iBond to Central Clearing and Settlement System(CCASS) by filling in a transfer request form at branches. It normally takes 3 business days (if request is received before noon) to complete the transfer before you can sell through HKEx. Please note the transfer fee is HKD100. (Such fee also applies for iBond transfer from Central Clearing and Settlement System (CCASS) to Central Moneymarkets Units (CMU).) Selling of the iBond via the stock trading platform is subject to fees and charges of stock trading services including brokerage fee, deposit charge (purchase order only), Securities and Futures Commission transaction levy, investor compensation levy and Hong Kong Exchanges and Clearing Limited trading fee (details as illustrated in Q4. below).
The major differences are the iBond transfer leadtime and the costs involved which are summarized below:
|via OTC(trading outside the Stock Exchange) through our Bond Trading Platform||via the Stock Exchange|
|Trading of allotted iBond||Instantly||Upon completion of transfer iBond to Central Clearing and Settlement System(CCAS) of which 3 Business days are required. (only support same name transfer).
Service fee is HK$100. (Such fee also applies for iBond transfer from Central Clearing and Settlement System (CCASS) to Central Moneymarkets Units (CMU))
|Costs on trading||According to bid/ask price. No other fees.||Brokerage fee 0.25% to 0.5% (depends on trading channels); minimum HK$100.
Trading fee : 0.005%
Transaction levy : 0.0027%
Deposit charge for purchase order: HK$5/lot; minimum HK$30, maximum $200.
|Holding the iBond||No other fees||Safe custody fee: HK$25 monthly
(for Premier, Advance and SmartVantage / HK$30 for other general accounts)
Dividend collection : 0.5% of dividend amount; minimum HK$ 30, maximum HK$2,500
Redemption at maturity : minimum 0.5% of Principal Amount or HK$30, maximum HK$2,500
For details of fees/charges/levy, please refer to the Local Securities Service Charges at www.hsbc.com.hk
You can visit any branch and fill in a transfer request form. It normally takes 3 business days to complete the transfer if request is received by the bank before noon. A service fee of HK$ 100 will be charged. (Such fee also applies for iBond transfer from Central Clearing and Settlement System (CCASS) to Central Moneymarkets Units (CMU).) Upon completion of transfer, the iBond holding will be held under the respective stock code for trading via HKEx.
You can trade iBond through the following markets :
The price in the 2 markets may be different and there is chance that the price on HKEx is higher than OTC or vice versa. This is due to the different demand and supply in respective markets and that the price is driven by different market pool. The price gap also reflects the associated fee/levy when trading on HKEx.
You should consider to trade in which market by considering the leadtime and all the associated costs (please refer to Q3 & Q4) besides the price.
According to the Silver Bond Issue Circular, if a customer applied Silver Bond via placing Bank, the allotted Silver Bond will be held through Central Moneymarkets Units (CMU), a debt securities custodian.
All HSBC personal customers can apply for Silver Bond IPO, provided that the customer (or the principal account holder for joint account):
Silver Bond will not be listed on any stock exchange. If you wish to sell the allotted Silver Bond before maturity, you may only submit an early redemption request. Redemption will take place on the third business day following receipt of early redemption instruction.
Securities is the generic name for shares and other investment tools quoted on the stock market. Individuals may invest in securities, either through a broker or through their bank, and can check the progress of their investment every day in the newspapers or on the Internet.
It is possible to enjoy a higher rate of return from investing in securities than from savings accounts. Stock market securities in thriving economic climates will generally show an increase over time, and sometimes within a very short period. However, all stock markets are volatile and buying securities should not be seen as a short-term method of making money.
Buying securities also costs money. Stockbrokers make various charges for their services, such as commission. You may consider taking advantage of convenient payment and reimbursement terms by dealing through your bank.
Other than investing in securities by yourself, you can assign asset management professionals or companies to invest on your behalf.
Simply call (852) 2233 3322. Speak to us after keying in your account number and PIN.
The basic information required is the stock name, stock market, order size, your price limit and settlement currency. It is worth paying attention to the stock name. Using the full stock name in your order will ensure no misunderstanding on which stock to trade, as some stocks may have similar names. If in doubt, we will be happy to assist you based on your description of the abbreviated name, the nature of business and the latest closing price.
We accept limit price orders. Orders placed will be valid for the same day until the respective market closes. You can place orders with us anytime. Orders received after the trading hours of the respective market will be processed on the next trading day.
The following table shows the Hong Kong time for trading hours in each of the overseas markets:
|Countries||Trading Hours (in Hong Kong Time)|
|North Hemisphere Summer||North Hemisphere Winter|
|UK||3:00 pm - 11:30 pm||4:00 pm - 12:.30 am|
|Japan||8:00 am - 10:00 am and 11:30 am - 2:00 pm||8:00 am - 10:00 am and 11:30 am - 2:00 pm|
|Australia||8:00 am - 2:00 pm (Australia Winter)||7:00 am - 1:00 pm (Australia Summer)|
|Canada||9:30 pm - 4:00 am||10:30 pm - 5:00 am|
|China 'B' Shares
(Shanghai and Shenzhen)
|9:15 am - 9:25 am (bidding session)
9:30 am - 11:30 am
1:00 pm - 3:00 pm
Upon order placement (trade day), the purchase amount will be held on HKD/USD account. The actual debit of the money will take place on the settlement day (ie, T+3). Money held between the placement day and the settlement day will continue to earn interest in your account. In case the settlement day is a Hong Kong public holiday, the actual debit of the money will take place on the last working day before the settlement day.
If you choose to settle in USD and need to transfer sufficient funds into your USD settlement account, please do so before 7 p.m. Hong Kong time. We will be pleased to help you.
Stocks can be sold once settlement is completed (ie, T+3). The sales proceeds will be credited to your account three days after the sales execution (ie, T+3).
Alternatively, you may also call our investment phonebanking services hotline or log on to HSBC Internet Banking to check your order status and execution result or sign up for our free eAlerts investment order confirmation service at HSBC Internet Banking to receive your stock order execution result via SMS. For more details about eAlerts, please go to 'Investment eAlerts' section at HSBC Internet Banking.
Trading will be available if overseas stock markets are open. We will be there to take your orders and answer your queries during Hong Kong public holidays.
Customers are eligible for signing up for the U.S. Stock Trading Service if they are
* One of the criteria for being classified as 'Non-professional' subscribers is not being engaged as an investment advisor. In brief, "Investment adviser" means any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing, purchasing, or selling securities, or who, for compensation and as part of a regular business, issues or promulgates analyses or reports concerning securities.
HSBC's US Stock Trading Service provides trading and custodian services for US stocks listed in NYSE (NYSE Equities Market), NASDAQ and AMEX (NYSE Amex Equities Market). Non-listed US securities are beyond our service scope.
Note: Please seek your own independent professional advice for filling out the W-8BEN form and the NYSE Market Data Agreement where necessary.
The W-8BEN form (should submit together with the Return Sheet) is a requirement of the U.S. Internal Revenue Service ("IRS") for U.S. tax reporting for non-U.S. persons. Non-U.S. persons are subject to U.S. tax (max 30%) on certain types of income received from U.S. sources, such as interest and dividends. (Guidance for Completion of W-8BEN form)
Non-U.S. persons are required to complete and submit a duly completed W-8BEN Form for the following main reasons:
If you would like to know more about the instructions for Form W-8BEN and tax treaties, please visit the following IRS websites or consult your tax adviser:
Instructions for Form W-8BEN:
Tax Treaties Information:
The NYSE Market Data Agreement, also known as "Exhibit B Agreement For Market Data Display Services", relates to provision of market data by the New York Stock Exchange (NYSE). As required by NYSE, every HSBC customer must sign this agreement to confirm that he/she is a "non-professional" market data subscriber before obtaining access to the NYSE's market data.
Dollar Cost Averaging refers to the buying of securities at scheduled intervals, irrespective of the dollar amount, whether the stock price is rising or falling. When the share price is low, more shares can be bought and vice versa. At such, the average cost will be less than the average of the price paid. The risk arising from short-term market fluctuations will be reduced as a result.
Your investment amount will be debited from your designated account on the 8th of each month (the "Specified Date"). For debit through an account with the Bank, the amount will be debited on the preceding business day if the Specified Date is a non business day.
The Bank will start to purchase shares on behalf of all SMIP customers at the market price at 11am on the transaction date (3rd trading day after the debit date). The average price of all purchases will be used and any surplus funds will be credited to your account two business days after the transaction date. The purchased stocks will be deposited into your investment services or securities account on the settlement date (2nd trading day after the transaction date).
There is no minimum investment period. Your chosen stocks will be purchased and deposited into your securities account on a monthly basis, after settlement of which you can sell the shares anytime to capture the profit or meet emergency needs. You also have the flexibility to suspend or stop your contribution as needed.
However, you are recommended to treat it as a medium-to long-term investment as you will be able to enjoy higher growth potential of the stocks over time without having to worry about any short-term market fluctuations.
The minimum amount for setting up or amending or cancelling SMIP is HKD1,000. The minimum amount for top-up existing SMIP is HKD5,000.
Apply now at HSBC Internet Banking, or Simply visit any HSBC branch in Hong Kong to set up the Stocks Monthly Investment Plan. Please note that it takes five business days (excluding Saturday) to set up the Plan.
Unit trusts (or mutual funds) give investors the opportunity to diversify even a small investment in securities, bonds, currencies and commodities in markets around the world. This is achieved by combining the resources of many investors into one large fund which can be spread over a number of different investments and over a wide geographical area. This range of investments is called a portfolio.
Unit trusts have a number of benefits:
Some unit trust products are linked to the index options listed on the various stock exchanges or sometimes to currency options. They can be slightly riskier than more diverse funds.
You can start up a unit trust for the price of a dinner for two, and you can make a monthly minimum contribution of as little as HKD1,000.
Unit trusts are very flexible and you can buy and sell unit trusts on any (dealing) day. Your proceeds can take as little as seven working days to access.
You don't need to make a large lump sum investment. We can also offer you a monthly investment plan where no initial lump sum is required and the monthly contribution is as low as HKD1,000.
Unit trusts obviously have an element of risk but less so than direct investment on the stock market. Risk is comparatively lower because it may be spread over a number of years, a variety of commodities, currencies or countries - you are spreading the risk.
Because unit trusts are comparatively low-risk investment, they therefore can offer lower rates of return in comparison to high-risk direct investments.
Professional fund managers do this for you, so you don't have to monitor them on a daily basis. They have access to information and research statistics from economists and analysts around the world, and keep you updated of major changes.
Unit trust fees are actually much lower than if you were to set up an individual fund or investment. This is due to economies of scale. As a large number of investors are involved in a fund the fee cost is therefore shared and thus reduced.
HSBC offers wide range of unit trusts under 3 major asset categories, namely Equity funds, Balanced or Multi-assets funds and Fixed Income funds. Individual funds investing in different regions, has different investment strategies and investment objectives to better serve our customer's wealth needs against his/her risk appetite.
Broadly speaking, unit trusts serve as one of the major investment tools to fulfill customer's retirement needs and planning currently. It also serves to cater customer's education needs, for wealth accumulation and other wealth needs.
The relevant fees and charges of individual unit trusts may vary, including but not limited to Initial Charge and Annual Management Fee. Please refer the detailed fees and charges from the respective offering documents.
In general, investors are exposed to following risks in investing in unit trusts and investors should refer to the individual product offering document for further details and risks involved.
You can place your subscription and redemption orders via HSBC Internet Banking. If you already have an HSBC Investment Services/Securities account, you can simply log on and execute your orders with us. We also offer Unit Trusts Investment Services through our branches. To open an Investment Services/Securities account, simply visit www.hsbc.com.hk any time or visit any HSBC branch in Hong Kong.
Yes, HSBC will provide contract note of relevant transactions and you can also find your unit trusts holding record in the monthly consolidated statement (if applicable).
Structured Products are investment instruments embedded with derivatives, under which the return, the amount due and/or the method of settlement is determined by reference to 1) changes in the price, value and/or level of one or more reference underlying assets; and/or 2) the occurrence or non-occurrence of an event.
Customer can benefit from investing in Structured Products:
Effective from 1 January 2011, a Pre-Investment Cooling Off Period arrangement is required by the Hong Kong Monetary Authority (HKMA) for non-listed derivative product purchases to enhance investor protection to ensure that customers have sufficient time to consider the non-listed derivative product purchase.
Pre-Investment Cooling-off Period (PICOP) is applicable to each particular dealing of the Structured Products if investor is one of the following retail customer types:
(1) An elderly customer aged 65 or above, unless investor is not a first-time buyer of that particular type of structured products AND investor's asset concentration^ is below 20% AND investor opts out from the PICOP arrangement; or
(2) A non-elderly investor who is a first time buyer of that particular type of structured products AND investor's asset concentration is 20% or above.
If Pre-Investment Cooling-off Period is applicable to investor, investor can only subscribe for the product at least 2 calendar days (of which the last day should be a business day) after product discussion with the Bank. This is to ensure that investor have sufficient time to understand the product and consider the appropriateness of the investment before deciding on the subscription.
^ For the purpose of determining whether PICOP is applicable, asset concentration refers to the percentage of total net worth (excluding real estate properties) to be invested in this product.
If the investment period of the Equity Linked Investment customers subscribe is more than one year, customer can cancel or unwind (as the case may be) the whole of the Equity Linked Investment purchase order during the period from (and including) the date customers place the purchase order to (and including) the fifth Hong Kong business day after the order date (this period is referred to as the post-sales cooling-off period), and get back the issue price minus any negative market value adjustment. Please refer to the Product Booklet for details. The Bank does not apply any handling charge on such cancel or unwind order. If customers choose to cancel or unwind the Equity Linked Investment purchase order during the post-sales cooling off period, please contact our branch between 10:00am and 12:00 noon on any Hong Kong business day during the post-sales cooling-off period. Our staff will help you complete the sell order form.
Structured Products linked to various underlying including equity, Exchanged Traded Fund (ETF), foreign exchange (FX), and interest rates are offered in HSBC.
Advice will be provided to customers upon deposit placement & maturity for Deposit Plus, Capital Protected Investment Deposits, and Equity Linked Investments.
In general, investors are exposed to following risks in investing in Structured Products and investors should refer to the individual product offering document for further details and risks involved.
In general, there are no additional charges on investing Structured Products, all operational, administrative and hedging costs, etc have already been contained and subsumed within the calculation of the return and/or other variables of the Product.
If customer elects for physical settlement for Equity Linked Investment, customer will need to pay for related deposit transaction charge plus stamp duty for the underlying assets being deposited to your investment account.
Customers can early sell back Equity Linked Investments and Interest Rate Linked Capital Protected Investment Deposit subject to individual product offering documents. The early sell back price will be subject to prevailing market conditions and may be less than the principal amount of the original investment.
After the Deposit Plus order placement on trade date and before deposit date:
On DPS deposit date, i.e. on trade date + 2 business days,
- Order amount in any deposit currency will be included in the calculation of Credit limit of Secured Credit Facility until it is uplifted on maturity date
You can invest in foreign currency with HSBC via a number of ways. You can use our 24-Hour Foreign Exchange Service to place your exchange instruction anytime anywhere via internet or mobile banking.
If you have a target exchange rate in mind, you can use our FX Order Watch Trading Service to preset your instruction.
If you want to accumulate your foreign currencies or RMB via regular saving, you can use the ForEx / RMB Switching Service to preset your exchange instructions and we will automatically execute the instructions for you according to your preset criteria.
FX Order Watch Trading Services is available to HSBC Premier and HSBC Advance customers only. Customers can pre-set their own target FX rate using Internet Banking or Mobile Banking to convert funds automatically within accounts for the foreign exchange when the FX rate is hit. It also provides an alert service which customers will be informed via SMS/email when the FX rate is hit.
Customers can use HSBC's foreign exchange services for many purposes which include but not limit to the followings :
There are no Hong Kong regulatory restrictions on general foreign exchange. However, for margin FX, it is subject to regulatory restrictions.
All customers who have valid foreign currency account can transact in FX.
Following major service platforms are available for HSBC customers to conduct FX transactions :
Please refer to the Foreign Exchange section in our website for more details of each service.
When conducting in foreign exchange, customers need to be aware of the following risks.
Currency conversion risk - the value of your foreign currency and RMB deposit will be subject to the risk of exchange rate fluctuation. If you choose to convert your foreign currency and RMB deposit to other currencies at an exchange rate that is less favourable than the exchange rate in which you made your original conversion to that foreign currency and RMB, you may suffer loss in principal.
HSBC customers are provided with timely and comprehensive FX information from our FX specialist. Please refer to Foreign Exchange Market News section in our website and you will find the latest FX market information, including trend chart, technical analysis and comments from our FX specialist for most major currencies.
HSBC offers a comprehensive foreign exchange services to customers which include :
Please refer to Foreign Exchange section in our website for more details
IPO stands for Initial Public Offering. It is the first time a company issues securities/bonds to investors. The newly issued securities/bonds may be listed on a stock exchange.
Over-subscribing to an IPO
In some cases, IPOs may be oversubscribed. The company may go through a balloting/allocation process to determine whether an investor will receive any securities and if so, in what quantity. An investor may be tempted to subscribe for a greater quantity than he intended to, believing that he will not receive the full amount in case of over-subscription. However if the IPO is not oversubscribed, the investor will receive all the quantity applied for and will have to pay the full cost.
There is a risk that the company's share price will drop below its initial IPO price, once the company's securities/bonds trading (on the stock market or otherwise) commences. Securities/bond/ prices will fluctuate over time.
It is vital to understand the company and the business you are investing in. Thoroughly study the prospectus, financial reports and even seek professional advice before you make investment decisions. For more information on investing, visit our Investment Services.
It is a service open for HSBC Investment Services/Securities account holders to subscribe for newly listed/issued securities/bonds/certificates of deposits in IPO in HSBC Nominee's name. Customers can click on www.hsbc.com.hk and follow the links to fill in the IPO application form and choose the settlement account from any of their HSBC accounts.
HSBC would like to provide you with the greatest convenience. If you choose to apply for securities with HSBC IPO Nominees Services (to do so, you must maintain an Investment Services/Securities account with HSBC), we will help you through with the whole application process, and you may enjoy the following benefits:
Do I need to register with HSBC if I apply through HSBC IPO Nominees Services? Is there any service charge or handling fee?
Yes, to apply through HSBC IPO Nominees Services, you need to maintain an Investment Services/ Securities account with the Bank. The securities/bonds/certificates of deposit allotted will be directly deposited into the Investment Services/Securities account with the Bank. Unless otherwise specified, there will be a handling charge of HKD50 for every stock IPO application through HSBC Internet and Mobile Banking. The handling charge will be HKD100 if the stock IPO application is through our designated branches or IPO service hotline on (852) 2269 2121. For bond and certificates of deposit IPOs, there will be a handling fee of 0.15% on the subscription amount through HSBC designated branches, IPO service hotline, Internet and Mobile Banking. There may also be other charges in respect of individual IPO. Please refer to the details of respective IPO at the eIPO Centre.
How can I make the application payment for the application? Is there any maximum payment limit applicable?
With HSBC IPO Nominees Services, you can choose to debit the application money from any of your HSBC savings or current accounts.
There is no payment limit as long as you have deposited enough money for the application in your chosen settlement account. However, you should ensure that there are sufficient funds in the account to cover the full subscription cost no later than 12 midnight on the day which is one business day prior to the closing date of the public offer period, otherwise, your IPO application will be cancelled accordingly.
Yes, it is a round-the-clock service and you can submit your application via HSBC Internet and Mobile Banking for the particular IPO anytime within the specified HSBC IPO Nominees Services offering period.
You can check your chosen settlement account on the IPO closing date, since application money will only be debited if the application has been successfully submitted.
No, once you submit the eIPO application, we will start processing it and you cannot amend or cancel your application.
For successful applications, newly allotted securities/bonds/certificates of deposit will be credited into your Investment Services/Securities on the Issue Date. You can then take immediate action according to market conditions.
For partially successful and wholly unsuccessful applications, the application money (or part thereof) will be credited back directly to your chosen settlement account within the days specified in the respective Prospectus/Offering Memorandum.
A market order is executed immediately when placed and is priced at the prevailing market rate at the time of execution. When placing a market order, the transaction is usually executed at, or very near, the price displayed when the order was submitted. However, due to the rapidly changing nature of FX exchange rates, it is possible for the rate to move more than you are willing to accept.
To address this, HSBC Margin FX platform enables you to place upper and lower bound on each order that will prohibit the order's execution if the market rate falls outside the limits you specify. The customer is also allowed to set up stop loss, take profit and trailing stop instructions under Market Order.
A limit order is the order to buy or sell a currency pair at a specified price within a defined period. When the specified price is reached, the limit order will be executed.
A take profit order is used to lock in profits in the event a currency moves in a favourable direction from the current level.
A stop loss order is similar to a take profit order but rather than locking in a profit, this order type sets a threshold to prevent continuing losses by automatically closing a position once the exchange rate reaches the level you assign to the order.
Trailing stop order is a stop loss order where the price at which an open position is closed changes dynamically based on a specified spread from the relevant quotation price. If the relevant quotation price for an open position moves in a favourable direction but stays unchanged if the relevant quotation price for an open position moves in an unfavourable direction.
An order is the expressed intention to buy or sell currency. A trade is the execution of the order. A position is the aggregate of all trades for a particular currency pair.
In the case where only one trade is open for a given currency pair, sometimes the terms trade and position are used interchangeably.
Each currency pair listed is accompanied by an exchange rate that shows the bid and ask price. The bid price is the rate that the market/broker is willing to buy for the currency pair; in other words, this is the rate you sell the currency pair to the market. The ask price is the rate at which the market/broker is willing to sell and it represents the rate you buy the currency pair.
The difference between the bid and the ask price is referred to as the spread. The bid price is always less than the ask price.
'unit' is the base currency in a currency pair. For example:
1 unit of USD/CAD, USD/CHF or USD/JPY would equal 1 US Dollar.
1 unit of EUR/USD, EUR/CHF or EUR/HKD would equal 1 Euro.
This provides the flexibility for you to specify an amount that suit your investment need. The maximum trade size is 5 million units of trading currency.
The number of units you can trade with is determined by: the currency pair, the margin you have available, and the margin ratio for your account.
Pip is the abbreviation of "price interest point". One pip for most currency pairs is referring to the 4th decimal place of the exchange rate. For currency pair that involves JPY, one pip is referring 2nd decimal place of the exchange rate. Another term 'pipettes' is 1/10 of pip.
You need to go through our online application process. Your risk attitude, previous investment experience and other related factors will be reviewed in the application. It usually takes 2 to 3 working days to complete. You will receive confirmation letter and email upon account opening.
The minimum deposit for opening of margin FX trading services is USD 10,000 or equivalent. The deposit can be placed in any of your collateral accounts.
The Margin FX platform accepts trades from 5 am Monday HKT to 5 am Saturday HKT during summer time (US daylight saving), and 5 am Monday HKT to 6 am Saturday HKT during winter time (non-US daylight saving).
You can trade in the following currencies:
10 currencies: AUD, CAD, CHF, EUR, GBP, HKD, JPY, NZD, SGD and USD.
45 currency pairs in total.
There is no minimum trade size. The maximum trade size is 5m at base currency. For example, if you are trading EUR/USD, the maximum trade you can make will be for EUR 5m. Please note that the total open positions cannot exceed USD 20m.
The prices are updated in real-time. When the market (or price) for a currency changes it will be reflected to the customer immediately.
It is not possible to hold long and short positions of the same currency pair at the same time in the same account. The platform will offset such positions on a first-in, first-out basis.
Your account currently has below completed trades:
- 30,000 units EUR/USD at long position (Order executed on 13 Dec 2011)
- 50,000 units EUR/USD at long position (Order executed on 14 Dec 2011)
If you place a market order to sell 38,000 units EUR/USD, this order will be split into 2 trades. The long position of 30,000 units EUR/USD, executed on 13 Dec 2011, will be offset first. The remaining 8,000 units from the sell order will reduce the long position of EUR/USD executed on 14 Dec 2011.
In the end, your account will have 42,000 units EUR/USD at long position (Order executed on 14 Dec 2011).
A limit order is triggered once the specified price in the order is reached. The Margin FX system will execute the trade using the price in the system at that moment. However, if the market is very volatile, the execution price may not necessarily be the same as the specified price.
You can protect yourself against unexpected price movements by setting upper and lower bound to your order so that the order will get executed only if the price at the server lies within the bounds. Please note that if the price is outside the bound range at the moment of execution, the limit order will be cancelled. In other words, the order will not be executed even if the price moves back within the range in a very short period. Customer has to place the order again.
The Margin FX platform will not trigger an order if the execution price has not been reached. You should compare the execution price of buy order against the ask price and that of sell order against the bid price.
If you are looking at the Close Price, Candlestick, HLOC, or HLC charts, your order may appear to be out of bounds because the bid and ask prices are not being displayed. Instead, you can use the Min-Max chart view when examining your trades. This chart displays the range between the minimum bid and the maximum ask prices during each time interval.
Your account leverage ratio is assigned based on your investment experience, trading frequency and other relevant information. The leverage ratio will be assigned at the bank's absolute discretion.
Please note that the maximum leverage ratio for the currency pairs that involve HKD is 5:1. For example, if you have leverage ratio of 20:1 and trade EUR/HKD, you will be only entitled to the leverage ratio of 5:1. If you trade EUR/USD, you will still be entitled to 20:1 leverage ratio. If you have been assigned a leverage ratio lower than 5:1, you will be only entitled to that assigned leverage ratio for trading all currency pairs.
You can submit a form to change your leverage ratio. Please note the following:
Yes, you can open a HKD account and a USD account.
Yes, your collateral account is a statement savings account and interest bearing.
Yes, you can deposit funds in any currency and it will be converted to either USD or HKD, depending upon what type of collateral account you hold.
You can transfer in or deposit cash via branch, internet banking, phonebanking service and ATM/ Cash Deposit Machine.
You can withdraw from internet banking and branch.
Margin call refers to the notifications to the customers when the net asset value of their account falls to the level which is at specific percentage above the close-out level. Customers are required to either deposit more funds in order that they have sufficient margin to cover the position, or close some of the positions.
No. However, if you do not deposit enough collateral and when the price further drops to the level that your NAV is below 50% of margin requirement, your position will be closed out by the system.
The Margin FX platform has a unique feature whereby the customer's positions are automatically liquidated when a certain threshold has been breached. The closeout is to protect customers from unlimited losses and thereby protecting HSBC from credit exposure. The closeout will be automatically triggered when the net asset value falls below 50% of the margin required to maintain all of the customers open positions. When this occurs the platform will close all of the customers open positions simultaneously.
Different sources will always quote different price levels. As there is variability in the spread, it is certain that most sources will differ from each other at any given time.
We advise our customers to use external rate sources as a general guide for price levels, but that they should never be used as a direct comparison to the prices on Margin FX platform, which are always considered to be authoritative.
1. Click the Draw Trendlines button located above the graph, the second icon from the right. A menu which lists different types of trendlines appears.
2. Select the type of trendline you want to draw.
3. Place the cursor where you would like the trendline to begin, and click. (For horizontal and vertical trendlines, simply click once to place the line.)
4. Move the cursor where you would like the trendline to end, and click.
Basic trendlines are straight lines that you can draw on the graph to mark times, values, or trends. Margin FX platform includes below options:
1. Vertical Trendline: Used to mark a time period.
2. Horizontal Trendline: Used to mark a price.
3. Trendline: A diagonal line to mark trends or movement on the graph.
1. Fibonacci Arc
2. Fibonacci Fan
3. Fibonacci Retracement
4. Fibonacci Time Zone
5. Pivot Points
6. Speed Lines
For more information on trendlines, please refer to the documents inside 'Learn more about Margin FX' in our platform.
Click the Draw Trendlines button located above the graph, the second icon from the right.
Use the bottom menu items to:
Click over an existing trendline to modify it. A menu will appear:
Click Buy/Sell at the top of Margin FX platform and select Full Trades History. The above screen will pop up.
Account: You can select from a list of your accounts.
Field Selection: You can select different kind of information (e.g. price, rollover interest) you want to display for the trades.
From Date: You can specify the start date for the period you want to view for your trades.
To Date: You can specify the end date for the period you want to view for your trades.
Number of days to retrieve: You can specify the number of days you want to view for your trades. For example, if you input 2 in this field, it will display the trades of latest 2 days.
Parameters can be set for all currency pairs or a specific currency pair:
Click 'Setting' at the top of the platform and select User Preferences. A 'User Preferences' screen will appear and select Trading.
The following settings apply to all currency pairs: 1. Enable Bounds By Default: Automatically enables and populates the bounds fields in the Order window with the default bounds. 2. Enable Stop Loss By Default: Automatically enables and populates the stop loss field in the Order window with the default stop loss. 3. Enable Take Profit By Default: Automatically enables and populates the take profit field in the Order window with the default take profit. 4. Enable Trailing Stop By Default: Enables the trailing stop and uses the default trailing stop values every time the Limit Order and Market Order windows are opened 5. Show Confirmation Windows: Click if you want to see windows asking you to confirm your action after you buy, sell, close, or modify a trade order. 6. Confirm Position Reversal: Notifies you if a position is being reduced, closed, or reversed by a new trade. This notification will be issued even if confirmation windows are disabled. Please note that the stop loss option is enabled by default with a pre-set stop loss limit. Customers should change the default set up if desired. The following settings apply to specific currency pair:
First select a currency pair and click the Use Custom Settings box.
1. MARKET: Choose a currency pair from this list box for you to use custom settings for thatpair. Leave "DEFAULT" selected if you want the settings to apply to all pairs.
2. Use Custom Settings: Check this box if you want the settings to apply to the pair you selected from the MARKET list box. (This box is grayed out if the DEFAULT market is selected.)
After you customize settings for a particular currency pair, you can toggle between those settings and the default settings by clicking this check box on and off.
3. Default Order Size: The default order size used in any "units" field (for example, in the Buy/Sell window). Use the pull-down menu beside this field to set the number of units (for example, 10,000) of the base currency or the account currency, or the percentage of units available to trade.
4. Default Bounds: The default value that appears in the bounds fields of the Buy/Sell window. Choose from pips, a percentage, or a monetary amount.
5. Default Stop Loss: The default value that appears in the Stop Loss field. Choose from pips, a percentage, or a monetary amount.
6. Default Take Profit: The default value that appears in the Take Profit field. Choose from pips, a percentage, or a monetary amount.
7. Default Trailing Stop: For trailing stops, determines the default amount and units (pips, price, a set amount of the home currency, or a percentage of price, balance, or NAV).
Note: the trigger price is calculated from the bid price (for short market orders) or the sell price(for long market orders). It means that the trigger price is determined by the maximum trailing stop plus the spread.
8. Default Limit Order Duration: By default, limit orders expire after one week. Instead, you can set the default expiry period to a selected number of hours, days, or even a month.
Please click Apply and Save after you have finished changing the parameters.
NSE means non sufficient funds.
When you log on to the Margin FX Trading Platform from the web, a pop-up window appears.
The pop-up block software installed does not allow the trading platform to load.
You can configure the software so that it allows the pop-ups from Margin FX Trading Platform.
The Java plug-in cache is corrupted.
You can clear the Java cache (See Q6 - How do I clear my Java cache?)
Your computer has 'behind the firewall' error.
You can check if the 'behind the firewall' error is caused by hardware router. From the Windows start menu, click Run and type CMD. Once the black command prompt comes up, type IPCONFIG and press enter. If your IP address starts with 192 or 10, you have a hardware router. If not, you are directly connected to the Internet. If your computer is behind a hardware firewall, please make sure port 443(default port for HTTPS) is open when your access the Margin FX trading platform.
Your Java version is not upto-date.
Margin FX Trading Platform is supported by Java version 1.5 or above. You can download the most updated Java version from http://java.com.
One of the reasons for this freeze is that your web browser cache is corrupted. Please follow our instructions on how to clear your cache. (see Q6 - How do I clear my Java cache?)
Alternatively, you may have an old version of Java which needs to be upgraded. Please visit http://java.com and install the latest version.
You can use any browser with Java 5 support and 128-bit encryption, which includes popular web browsers such as Microsoft Internet Explorer version 7.0 and above, Firefox version 1.0 and above, and Safari version 2.0 and above.
Your Margin FX Trading Platform configuration may require more memory than that has been allotted for Java processes. If your computer has sufficient memory, you can increase the amount of memory that Java is allowed to use. Otherwise, you can reduce the number or size of graphs that you are using.
In order to change the maximum amount of memory that Java is allowed to use, open your Java plug-in control panel. Once the Java control panel is open, click the Java tab and click the View button. The Java run-time settings will open. In the column labeled java run-time parameters, type "-Xmx512m" (without the quotes) where 512 is the maximum amount of memory in megabytes that you would like Java to be able to use (or you can use another value instead of 512). Please make sure that you have included the '-' character when entering the parameter.
It is likely that Java is disabled or not installed. To enable Java, please follow our instructions (See Q11 - How can I enable the java in the web browsers?). To install Java, please visit http://java.com.
If Java is already installed, you may need to clear the cache, created by the Java plugin. (See Q6 - How do I clear my Java cache?) .
Please follow below steps to clear your computer's Java plug-in cache.
Windows and Linux
1. Close all applications.
2. Open your Java Plug-in Control Panel.
Windows - Navigate to Control Panel > Java Plug-in.
Linux - Navigate to System > Preferences > Java Control Panel.
3. On the General tab under Temporary Internet Files, click View...
4. From the Show menu, select Applications. Select all Margin FX applications and click the red X to remove these items.
5. From the Show menu, select Resources. Select all Margin FX resources and click the red X to remove these items.
6. From the Show menu, select Deleted Applications. Select all Margin FX applications and click the red X to remove these items.
Mac OS X
1. Close all Margin FX applications.
2. Navigate to HD > Applications > Utilities > Java Preferences.
3. On the Network tab, click View Cache Files...
4. From the Show menu, select Applications. Select all Margin FX applications and click the red X to remove these items.
5. From the Show menu, select Resources. Select all Margin FX resources and click the red X to remove these items.
6. From the Show menu, select Deleted Applications. Select all Margin FX applications and click the red X to remove these items.
If clearing Java cache does not solve the problem, please reboot the computer to allow your system to be in a 'clean' state.
To print graphs, click the Chart Options icon, shown as a series of vertical lines on the top right corner of the chart, and select Print Chart. To print any other portion of the platform, you need to take a screen capture of the user interface. If you are using Windows, press the Shift+PrintScreen to copy the whole screen or ress Alt+PrintScreen to copy the active window. After that, please paste the copied image into a program such as Microsoft Word or Paint.
If you are using Mac OS X, press Command+Control+Shift+3 to capture the whole screen or press Command+Control+Shift+4 to capture a designated area of the screen. After that, you paste the copied image into a program such as Microsoft Word or Paint.
You need to enable pop-up windows for the Margin FX Trading Services and Trail Account. If pop-ups are blocked, some platform windows (such as help button windows or dialog boxes) will not appear.
You can get the latest Java software here - http://java.com
Please follow below steps to enable the java in different web browsers:
1. Click Tools and then Internet Options
2. Select the Security tab, and select the Custom Level button
3. Scroll down to Scripting of Java applets
4. Make sure the Enable radio button is checked
5. Click OK to save your preference
1. Start Mozilla Firefox browser or restart it if it is already running
2. At the top of the browser, select the Firefox button (or Tools menu in Windows XP), then Add-ons The Add-ons Manager tab will open.
3. In the Add-ons Manager tab, select Plugins
4. Click Java (TM) Platform plugin to select it
5. Click on the Enable button (if the button says Disable, Java is already enabled)
1. Click on the wrench icon, then select Options.
2. Select Under the Hood and then Privacy Content Settings. The Content Settings panel will appear.
3. In the Plug-ins section, select the Disable individual plug-ins link to check whether Java is enabled
4. Click on the Enable link (if the Disable link appears, Java is already enabled)
You should know your financial need or investment objective, your current financial situation and risk tolerance.
Your objectives could incorporate any combination of the following:
You should also understand how much your target is, how long you want to invest, how much you can invest and your own investment preferences.
You can make use of our Risk Profiling Questionnaire to help you find out more about your investment risk tolerance.
The more you know about what you're investing in the better. Stock prices and unit trust prices are quoted in the newspapers and on the Internet, and you can keep track of spot prices through your broker or your bank.
You should also read through the relevant offering documents before making an investment decision to ensure that you understand the product features, potential return and risks involved. Constant review helps to keep your investments up-to-date. You can consult the bank for a review of your holdings. You can also track and review your investments through our Personal Internet Banking.
The information shown in this website is neither a recommendation, an offer, nor a solicitation for any investment product or service. Investment involves risk. You should carefully consider whether any investment product or service mentioned herein is appropriate for you in view of your personal circumstances. Past performance is no guide to future performance. Investors should refer to the individual product explanatory memorandum or offering document for further details and risks involved. The price of investment products may move up or down. Losses may be incurred as well as profits made as a result of buying and selling investment products.