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Online Forex Trading


General

  1. What is Leveraged Foreign Exchange Trading?
  2. What is the trading hour for online leveraged forex trading?
  3. What is the Day-End Process for online leveraged forex trading?
  4. What are Available Balance, Equity, Floating P/L, and Maintenance Margin?
  5. When is a client under margin call?
  6. Is there any Position Lock function provided?
  7. If I have encountered problem in using online leveraged forex trading, what should I do?

Quotation

  1. Is the quotation displayed at the online leveraged forex trading the indicative price only?
  2. When do I need manual quote?

Orders and Trading

  1. What are the meanings of different order status?
  2. Is there any limitation on order price?
  3. Is there any limitation on for the quantity of a conditional order?
  4. How can I know whether my order is rejected?
  5. In what situation that orders will be rejected with the error message of “Insufficient Fund” or “Insufficient Exposure Limit”?
  6. Why my stop/limit orders in “Open Position” are cancelled automatically?
  7. Why does the order status keep as “Sending”?
  8. Is there any trading limit for online leveraged forex trading account?
  9. What can I do if I would like to increase my exposure limit?
  10. If the account balance falls below 1.5% of the contract value of his position, will the account's position be liquidated?
  11. Why the executed trades and orders placed through my Account Executive by phone does not reflect on the online leveraged forex trading platform?
  12. Example 1:
  13. Example 2:

Closeout

  1. Can I choose a particular trade to set-off with another at online leveraged forex trading platform?
  2. Can I partially close my positions?

Computer Configuration

  1. What is the system requirement for running the Online Leverage Forex Trading?
  2. Is there any installation and usage of freeware or shareware that may affect the performance of Online Leveraged Forex Trading?
  3. Why I cannot enter the main page of the Online Leveraged Forex Trading?

General

  1. What is Leveraged Foreign Exchange Trading?

    Leveraged Foreign Exchange Trading allows you to hold a position much larger than your account balance and conduct your foreign exchange investment with a minimum outlay. Only 5% of the open contract value is required as initial margin. By using the initial margin deposit, you can trade up to 20 times of your margin deposit. You can purchase or sell one currency for another with the hope of making a profit when the value of the currencies changes in favor of your position, whether from market news or events that take place in the world. Foreign Exchange market is open 24-hours a day, allowing you to exit or open a new position any time

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  2. What is the trading hour for online leveraged forex trading?

    During New York Summer Time: Monday 07:00 – Saturday 03:00 (HK Time)
    During New York Winter Time: Monday 07:00 – Saturday 04:00 (HK Time)

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  3. What is the Day-End Process for online leveraged forex trading?

    During New York Summer Time: Daily at 03:00 - 05:00 (HK Time)
    During New York Winter Time: Daily at 04:00 - 06:00 (HK Time)
    Online leveraged forex trading will be suspended during day-end process. Please contact 24-hour Investment Centre at (852) 2213 8877 for assistances when needed.

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  4. What are Available Balance, Equity, Floating P/L, and Maintenance Margin?

    Available Balance is the amount available for trading. It is calculated as below:

    Available BalanceEquity of the account excluding Maintenance Margin, Clearing Fund Balance and Hold Balance
    EquitySum of Balance Carried Forward, Floating P/L, Pending P/L, Pending Interest and Other Pending Items
    Floating P/LThe Profit or Loss of open positions in the account calculated by the current reference price of the market
    Maintenance Margin Requirement3% of Contract Value (60% of Initial Margin Requirement)

    For further information, please refer to daily/monthly statement(s) or contact your Account Executive.

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  5. When is a client under margin call?

    When client's equity is less than maintenance margin, i.e. 3% of contract value of his open position, he will be requested to deposit the margin deficit to cover the initial margin (5%) immediately.

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  6. Is there any Position Lock function provided?

    Effective from 19 Apr 2010, lock/opposite position function for Leveraged Forex products will not be available for all channels. For offline lock/opposite instruction(s), dealing room will execute those order(s) as close order(s) and the older position(s) will be squared off accordingly (i.e. first in first out). Any extra opposite position(s) executed on top of the squared position(s) will be executed as new order with full margin counted.

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  7. If I have encountered problem in online leveraged forex trading, what should I do?

    Please kindly contact your Account Executive or 24-hour Investment Centre at (852) 2213 8333 for handling your order first. For technical problems, you may contact our customer service at (852) 3583 3388.

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Quotation

  1. Is the quotation service displayed at the online leveraged forex trading the indicative price only?

    Yes. The price displayed on the top of the trading platform is indicative only. If you wish to trade a currency with a market order with quantity less than 10, you can directly take reference from the “Quote Table”. If you want to place a market order with quantity more than 10, you have to make a quote by clicking on the “Quote” in the order ticket. Dealer will then response you an executable price. System settings are subject to without prior notice.

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  2. When do I need manual quote?

    Under normal condition, when the quantity of an order is more than 10, you have to make a quote by clicking “Quote” in the order ticket. Dealer will then response you an executable price. The quoted price will become invalid after 10 seconds. You have to click “Quote” once again for another valid quote. Under volatile market condition, it is possible that manual quote is needed for each order regardless of the quantity. System settings are subject to without prior notice. If you want to change the threshold for manual quote, please contact your account executive.

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Orders and Trading

  1. What are the meanings of different order status?

    SendingThe order is sending to the market
    PlacedThe order is sent to the market
    CompletedThe order is executed
    PendingThe order is waiting to be sent to the market
    CancelledThe order becomes invalid
    ExpiredThe order becomes invalid as it is not executed in a preset period of time
    RejectedThe order is refused to be sent

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  2. Is there any limitation on order price?

    Yes. Apart from market order, limitation on the order price will be applied for other order type.

    Minimum difference between Conditional order price and market price20 pips
    Maximum difference between Conditional order price and market price500 pips


    For example, market price of EUR/USD is 1.5000/1.5005. If we want to place a limit sell order, the order price has to be within 1.5020 (1.5000 plus minimum difference of 20 pips) and 1.5500 (1.5000 plus maximum difference of 500 pips).

    If we want to place a If then sell order, the price of the first “If” order is the same as above, which is within 1.5020 and 1.5200. Supposedly we set the order price to be 1.5100, the reference of minimum and maximum difference the second “then” order is taken from the first “If” order, which is within 1.5120 (1.5100 plus minimum difference of 20 pips) and 1.5600 (1.5100 plus maximum difference of 500 pips).

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  3. Is there any limitation on the quantity of a conditional order?

    Yes. Generally, limitation on quantity of a single conditional order is 500, and limitation on the number of an outstanding conditional order is 100. If you want to place a conditional order which exceeds the quantity limitations, please contact your account executive to place the order, or to change the limitations. System settings are subject to change without prior notice.

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  4. How can I know whether my order is rejected?

    If an order is rejected by the system, the order status will be “Rejected”
    If an order is rejected before sending to the market, the rejected reason will not appear in the order status but in the message centre at the bottom. The rejected reason includes but not limited to input error and rules violation.
    Please be noted that the message centre will be cleared after re-login, refresh, or switching language.

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  5. In what situation that orders will be rejected with the error message of "Insufficient Fund" or “Insufficient Exposure Limit”?

    If the required trading amount exceeds the “Available Balance” or “Exposure Limit”, your instruction will be rejected even if the order price is reached.
    If you would like to increase your exposure limit, please kindly contact your Account Executive

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  6. Why my stop/limit orders in “Open Position” are cancelled automatically?

    The stop/limit orders will be cancelled automatically if, you have insufficient fund/exposure limit; or you have closed the position with a market order.

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  7. Why does the order status keep as “Sending”?

    The order status may keep as “Sending” if you have a slow-speed bandwidth or; improper logout procedure or; the system is not functioning. It is suggested to logout the system properly (Online Leveraged Forex Trading: by pressing the “Logout” button at the right-hand corner). If you encounter this problem, please contact your account executive for order status enquiry in order to avoid any dispute and consequential loss.

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  8. Is there any trading limit for online leveraged forex trading account?

    Yes. To prevent clients from disclosing to exorbitant investment risk, there is an exposure limit for every account. Generally, the exposure limit for online leveraged forex trading is HKD300, 000. If you would like to increase your exposure limit, please kindly contact your Account Executive.

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  9. What can I do if I would like to increase my exposure limit?

    Please kindly contact your Account Executive for increasing the account exposure limit.

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  10. If the account balance falls below 1.5% of the contract value of his position, will the account's position be liquidated?

    In the event that funds in the account fall below 1.5% of the contract value of his position, Taifook Securities will have the sole right to liquidate the client's position without prior notice to cover the deficit. Please kindly pay attention to the account status and always maintain the account balance to 3% maintenance margin level.

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  11. Why the executed trades and orders placed through my Account Executive by phone does not reflect on the online forex trading platform?

    If you have placed orders through your Account Executives or 24-hour Investment Centre by phone, the executed trades or orders may not be able to reflect at your online leveraged forex trading account during the whole trading day. In this situation, clients should not rely on the information displayed on online leveraged forex trading platform to proceed your trading. For order placing and status enquiry, please directly contact your Account Executive or 24-hour Investment Centre for assistance.

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  12. Example 1:

    On day 1, customer buys EUR 125,000 against USD at 1.3500 On day 2, customer sells EUR 125,000 against USD at 1.3600 to close the position

    The profit gained on exchange rate is:
    (1.3600 - 1.3500) x 125,000 = USD 1,250
    Suppose the interest rate of holding EUR is -1.5%, and the interest rate for borrowing USD is -1.5%,
    then the difference is -3%.

    As the client close the position 1 day after the opening, the interest to be paid is as follows:
    EUR125,000 × 1.35 × 3% ÷ 360 (day) × 1 (day) = USD 14.06

    The total profit from the transaction is:
    USD1,250 - USD14.06 = USD1235.94

    As the profit or loss will be settled by HKD, and assume the spot rate of USD/HKD is 7.7581, the total profit in HKD is HKD 9588.55 (USD1235.94 x 7.7581). This amount will be settled in day T+2.

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  13. Example 2:

    Customer sells and buys 250,000 EUR/JPY cross currency contracts on the same day.

    Selling price: EUR/JPY 123.00
    Buying price: EUR/JPY 122.00
    USD /JPY: 90

    The profit gained is:
    (123 - 122) x 250,000 ÷ 90 = USD2,777.78.

    As the open and close positions happened on the same day, there is no interest incurred. Assume the spot rate of USD/HKD is 7.7581, the total profit in HKD is HKD21550.30 (USD2777.78 x 7.7581). This amount will be settled in day T+2.

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Closeout

  1. Can I choose a particular trade to set-off with another in online leveraged forex trading platform?

    Yes, you can choose a particular trade to set-off with another in the session "Open Position". If you place order through the quote table, it will be treated as a new order.

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  2. Can I partially close my positions?

    Partially closing a position is available by choosing designated quantity of particular position in the “Open Position” session.
    Please be noted that the quantity of limit order and stop order in an OCO order have to be the same. If there is any discrepancy, the latter one shall prevail.

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Computer Configuration

  1. What is the system requirement for running the Online Leverage Forex Trading?

    Minimum system requirement:
    PIII 800 Mhz or above
    Microsoft Windows 2000/, Windows XP
    Internet Explorer 6.0 or above
    PIII 800 Mhz or above
    Memory 128MB or above
    Resolution 1024 x 768

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  2. Is there any installation and usage of freeware or shareware that may affect the performance of Online Leveraged Forex Trading?

    There may be some freeware or shareware that affect the running of the Online Leveraged Forex Trading (e.g. the searching software of 3721.com). If you find any problem with the Online Leveraged Forex Trading after installation of other freeware or shareware, please kindly uninstall it to keep the trading system running smoothly.

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  3. Why I cannot enter the main page of the Online Leveraged Forex Trading?

    If user cannot reach the Online Leveraged Forex Trading after login with correct Account No. and Password, it may be caused by program with Pop-up Killer function. E.g. MSN Toolbar. In case the internet browser displays our main page of trading services right after successful login, please kindly switch off the Pop-up Killer function in your PC and try to login again.

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