Contract Margin
- Margin for all electronic overseas futures products are calculated based on gross margin requirement* instead of SPAN.
- Initial margin and maintenance margin, which are equal to gross margin, are the same for all electronic trading overseas futures margin requirement.
- Sufficient buying power is required for placing order(s) which would result in the increase of margin level.
- Exposure limit is set in every account for risk management purpose. Orders will be rejected if the margin level exceeds the exposure limit, regardless of buying power. Please contact your account executive to adjust exposure limit if necessary.
For the details of Overseas Futures Initial Margin, please click here.
*P.S.: Margin level calculations on Power Futures are based on gross margin while that ondaily/monthly statement are based on SPAN.
| Example |
SPAN applies to margin calculations of local futures.
A client opened a long position in two HSIF contracts. Initial margin requirement for one contract is HKD112,450, and HKD224,900 for two.
If client opened a long and a short position on the same contact with different settlement date simultaneously, the initial (SPAN)margin will be HKD7,500 only due to hedging effect.
For overseas futures, gross margin calculation applies instead of SPAN. If a client opened a long position in spot month and a short position in next month light sweet crude oil futures contract , spread margin will be the same as 1 light sweet crude oil futures. Unlike local futures, margin requirement will not be reduced. |
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