A customer expects that there will be a depreciation on GBD and an appreciation in JPY. With a margin deposit of HKD80,000 and a leverage ratio of 5x, the customer creates a deal of selling GBD against JPY at an exchange rate of 155.57

Suppose the customer squares the deal after 10 days at an exchange rate of 155.00

Since the exchange rate fluctuates, based on the example above, if GBP appreciates against JPY and the customer squares the deal at an exchange rate of 156, it will result in a total net loss of HKD1,209.61.

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.

A client expects a plunge in GBP and a rise in JPY some day, so he sells a GBP contract and buys in a JPY contract instead at 155.57 with margin deposit of HKD80,000 at 5X leverage:

Suppose the client will close the position 7 days later with FX rate at 155.00

As the exchange rate may go up and down, if GBP to JPY goes up in the example above, the client would lose HKD1,209.61 in total when the position is closed at FX rate 156.00.

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.