A customer expects that there will be an appreciation on CAD. With a margin deposit of HKD150,000 and a leverage ratio of 2x, the customer creates a deal of buying CAD at an exchange rate of 7.676

Suppose the customer squares the deal after 10 days at an exchange rate of 7.786

Since the exchange rate fluctuates, based on the example above, if CAD depreciates and the customer squares the deal at an exchange rate of 7.566, it will result in a total net loss of HKD4,062.78.

The illustrative example above is hypothetical and provided for illustration purpose only. It does not represent any guaranteed future returns.
* Call Margin rate is the rate that Margin Deposit reduces to 60% of the initial amount due to the fluctuation of the FX rate
# Cut Loss rate is the rate that Margin Deposit reduces to 30% of the initial amount due to the fluctuation of the FX rate.

On a certain date, the client expects a growing potential on CAD and opens a CAD ‘Buy Up’ contract at 7.676 with margin deposit of HKD150,000 and a 2X leverage ratio.

Suppose the client will conduct a margin call 10 days later with FX rate at 7.786

As the exchange rate may go up and down, if the CAD falls in the example above, the client would lose HKD4,062.78 in total when the position is closed at FX rate 7.566.

The above information is for reference only and does not constitute any guarantee of future returns.
*The margin call price is the price at which the exchange rate changes with the net margin value falling to 60% of the initial deposit.
#The price for forced margin call is at which the exchange rate changes with the net margin value falling to 30% of the initial deposit.