Margin FX - 'How to' Tutorials

Important Risk Warning:
  • Margin FX Trading is a leveraged foreign exchange investment product which involves a high degree of risk and is only suitable for customers who are of adventurous or speculative risk attitude. You should carefully study the Terms and Conditions and Risk Disclosures for HSBC Margin FX Trading Services before Trade.

1. Getting Started

2. Market Order Placement
3. Limit Order Placement

4. Keep track of your position

5. Advanced Features
Risk Disclosures for Margin FX Trading

Your attention is drawn to the following risks associated with the Margin FX Trading Services. You should carefully consider whether such trading is suitable for you in light of your financial condition, experience and investment objectives. The following is a summary of some of the risks involving the Margin FX Trading Services. It is not an exhaustive list, and you are recommended to obtain independent professional advice before entering into any trade.

  1. 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 licensed or registered person. If the market moves against your positions, you may have limited time to deposit an amount (which may be substantial) of additional funds in order to maintain your positions. If the required collateral or interest payments are not deposited or made within the prescribed time, 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 in light of your own financial position and investment objectives.
  2. Margin trading can involve a high degree of risk. Price changes in the underlying currency can result in substantial losses to you that may in some instances exceed the amount of margin you have placed with the Bank. You should not participate in margin trading unless you understand and are willing to assume the risks associated with such transaction and are financially able to absorb losses in excess of the collateral you deposit with the Bank.
  3. Under certain market conditions, you may find it difficult or impossible to liquidate a position. Placing Price Bounds, Stop Loss or Trailing Stop will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders at the designated price.
  4. The high degree of leverage which is often obtained in connection with margin trades can work against you as well as for you. The use of leverage can lead to large losses as well as gains.
  5. Risks relating to RMB - Margin FX Trading Contract is denominated in offshore RMB rates as traded in Hong Kong. CNH is different from that of RMB traded in Mainland China. You should note that the value of RMB against other foreign currencies fluctuates and will be affected by, amongst other things, the PRC government's control (for example, the PRC government regulates conversion between RMB and foreign currencies), which may adversely affect your return under this product. The value of your investment will be subject to the risk of exchange rate fluctuation.
  6. Trading on the Platform and via Phonebanking Service is subject to risks associated with trading on electronic trading systems or manned service, such as hardware or software or human failures, connectivity problems, computer viruses and system or power failures. As a result of any such failure or interruption, you may not be able to transfer funds into or out of your collateral account, place Instructions, view or cancel pending transactions, or take other actions in relation your account(s), which may cause you to incur a loss or may result in an automatic closeout.
  7. The Bank may trade as a principal in currencies and related instruments in various markets and may take an opposing position to a Margin FX Trade you place. The Bank may permit its employees to use the Margin FX Trading Services, and Bank employees who do so are subject to the Bank's internal policies and procedures applicable to executing transactions for their own accounts. The Bank and its employees who trade currencies may have interests different from or adverse to your interests. In providing you with access to the Margin FX Trading Services and entering into transactions with you, the Bank and its employees do not undertake any obligation to provide you with market or other information they may possess or to alter or refrain from their own trading.
  8. You may be affected by any curtailment of or restriction on our capacity to trade in respect of open positions as a result of action taken by the Authority or other governmental or regulatory bodies under Applicable Regulations or for any other reason. In such circumstances, you may be required to reduce or close your Open Positions with us.
  9. Any transaction involving foreign currencies, including Margin FX Trades, involves additional risks not common to transactions denominated entirely in your domestic currency. Foreign exchange rates can be highly volatile and can be affected by factors such as changes in political and economic policy (both domestic and overseas), political instability, wars, natural disasters and global market movements.
  10. You acknowledge and agree that, in providing you with the Margin FX Trading Services, the Bank will neither provide any recommendation to you in respect of nor any advice on the merits of any Transaction. You also acknowledge that, when executing Margin FX Trades whether via the Platform or manned Phonebanking Service, the Bank will act as an execution venue only. Before entering into a Margin FX Trade, you should assess it in light of your investment objectives and circumstances and the risks and benefits involved. You may suffer substantial losses under the Margin FX Trading Services.
  11. You acknowledge and agree that you will not rely on any information, proposal or other communication, including market research and commentary, from the Bank with respect to any Instructions you may give the Bank. Such information is merely for the purpose of facilitating your independent investment decisions and does not constitute advice. Commentaries, financial information and data are for reference only and are not intended as investment advice or for trading or other purposes. They may be provided by the Bank or other persons or compiled by the Bank from information and materials provided by other persons. The Bank does not warrant, represent or guarantee the accuracy, truth, reliability, adequacy, timeliness or completeness of any commentaries, financial information or data or whether it is fit for any purpose, nor does the Bank assume any liability (whether in tort or contract or otherwise) for any reliance on any commentaries, information or data by you or any other person.
  12. You acknowledge that notwithstanding that you may have informed the Bank of your investment objectives, you shall be solely responsible for your investment decisions which shall be deemed to be given on your own judgement. The Bank does not hold itself out as advising, or any of its employees or agent as having the authority to advise, you as to whether or not you should enter into any Margin FX Trade or to any subsequent action relating thereto or on any other commercial matters concerned with any Margin FX Trade governed by these Terms. You acknowledge that you will seek independent advice as to your legal regulatory or tax position in subscribing for the Margin FX Trading Services and in giving any Instructions to the Bank where appropriate. The Bank shall not be liable for any taxes or duties payable in relation to the Margin FX Trading Services or by you.

This brief summary cannot disclose all the risks and other significant aspects of the Margin FX Trading Services. You should carefully study the Terms and Conditions for Margin FX Trading Services and the information available on the Platform before you trade.