How to nullify the margin call?

When will the margin call be triggered?

When the Net Asset Value of the account is lower than the maintenance margin’s requirement, it means that the client's funds cannot meet the minimum asset requirement corresponding to his/her position(s), hence a margin call will be issued to the client.

A margin call notice will be issued when

1. “Net assets ≤ market value * maintenance margin factor”; or

2. “Net assets -Market value * initial margin factor > certain value”, even if net assets are still higher than “market value * maintenance margin factor”, margin calls will still be triggered.

What should you do when you receive a margin call?

You may choose to deposit equal or more than the margin call amount or reduce/ close the positions yourself. Please note that the deposit cut-off time is the deposit cut-off time on Hong Kong trading days (3:00 pm on working days). If you deposit funds after the cut-off time, please contact our client representatives.

How to nullify the outstanding margin call?

There are three ways to nullify the outstanding margin call:

1. Fund Deposit: deposit amount ≥ margin call amount

2. Stock Transfer in : the market value of the transferred stocks ≥ (margin call amount / individual stock margin ratio)

3. Close positions: market value of positions to be closed ≥ (margin call amount/initial margin factor)