Non-leveraged Collateralized Foreign Exchange Trading

Flexible trading at your choice

Non-leveraged Collateralized Foreign Exchange provides investors the flexibility to choose going long or short in currency pair of their choice, without leveraging on their margin deposits.

Flexibility in trading to cater bullish or bearish strategies

  • You can talk to our Treasury professionals over the phone to place your trading instructions
  • Preferential trading bid/offer spreads
  • Preset limit order service to help you capture investment opportunities round-the-clock
  • SMS to provide market information and limit order execution status
  • Online enquiry of your trading and margin account balance
  • Allow different currency time deposits as margin deposits, you can invest in foreign exchange while enjoying the margin deposit interests
  • Visit any of our branches to open the account. No set up fee is required.

Trading Hours and Channels

FX Investment Hot-line is available on Monday to Friday 9 am to 12 am (mid night)

Wide Range of Trading Currency Choices (in 10 currencies)

We offer a wide range of currencies combinations and you can choose from 10 currencies to compose any type of cross-currency trading.
Australian Dollar, British Pound, Canadian Dollar, The Euro, Japanese Yen, New Zealand Dollar, Chinese Yuan (Offshore), Swiss Franc, U.S. Dollar and Hong Kong Dollar.

Investor views that the EUR/USD
exchange rate will go up
(bullish on EUR, bearish on USD)

  • Strategy: Buy EURSell USD
exchange rate decoration
Margin Deposit 3,000,000 NZD*
Long Position Contract Amount 1,700,000 EUR
Initial Margin (100%) 1,700,000 EUR
Leverage Ratio = 1
Original EUR/USD
Contract Rate on
Trade Day
1.1600
Interest Rate Differential
on Long EUR/USD Position
(swap point) per day
+0.000086
The latest contract
exchange rate
on Day 10
1.16086
1.1600 + 0.000086 (swap point/day) x 10 Days

On Day 10, investor sells EUR against USD at EUR/USD exchange rate 1.2000 to square position.

Realized profit:EUR 1,700,000 x (1.2000 -1.16086)
= USD 66,538.00

*Clients can put NZD as collateral deposit to open a bullish or bearish position on major currencies and can still enjoy the NZD deposit interests. The actual contract amount depends on the prevailing exchange rates at time of trade.

The chart of return on investment with ascending exchange rate

All figures shown in the example including the exchange rate, contract rate and interest rate are for illustration only. You should not rely on the figures as any indication or guarantee of the expected return.

Investor views that the EUR/USD
exchange rate will go down
(bearish on EUR, bullish on USD)

  • Strategy: Sell EURBuy USD
exchange rate decoration
Margin Deposit 3,000,000 NZD*
Short Position Contract Amount 1,700,000 EUR
Initial Margin (100%) 1,700,000 EUR
Leverage Ratio = 1
Original EUR/USD
Contract Rate on
Trade Day
1.1600
Interest Rate Differential
on Long EUR/USD Position
(swap point) per day
+0.000003
The latest contract
exchange rate
on Day 10
1.16003
1.1600 + 0.000003 (swap point/day) x 10 Days

On Day 10, investor sells EUR against USD at EUR/USD exchange rate 1.2000 to square position.

Realized profit: EUR 1,700,000 x (1.16003 - 1.1630) = -5,049.00 USD

*Clients can put NZD as collateral deposit to open a bullish or bearish position on major currencies and can still enjoy the NZD deposit interests. The actual contract amount depends on the prevailing exchange rates at time of trade.

The chart of return on investment with descending exchange rate

All figures shown in the example including the exchange rate, contract rate and interest rate are for illustration only. You should not rely on the figures as any indication or guarantee of the expected return.

Note: Foreign exchange rates can move in favor of or against you. If they move against you to the extent that your margin deposit goes below 5% of your foreign exchange contract line of credit, we will endeavor to contact you as soon as possible to give you the option of depositing more funds or closing your position.

If the Remaining Margin is less than the Margin Call Threshold Amount, then the Bank may make a margin call on the Customer by oral, telephonic or written notice. If the Bank makes a margin call, customer shall deliver to the Bank not later than 48 hours after the margin call, additional margin in the amount of the difference between the Remaining Margin and the Initial Margin Amount. If at any time the Remaining Margin is less than the Liquidation Threshold Amount, then the Bank may immediately and without notice to customer close-out and liquidate all FX Transactions (including Margin Transactions) as provided for in the Agreement and apply all margin held by the Bank against any net loss resulting from such close-out and liquidation.

IMPORTANT: The risk of loss in foreign exchange trading can be substantial. You may sustain losses in excess of your initial margin funds. Placing contingent orders, such as "stop loss" or "stop limit" orders, will not necessarily limit losses to the intended amounts. Market conditions may make it impossible to execute such orders. You may be called upon at short notice to deposit additional margin funds. If the required funds are not provided within the prescribed time, your position will be liquidated without your consent. You will remain liable for any resulting deficit in your account. You should therefore carefully consider whether such trading is suitable in light of your own financial position and investment objectives.

Currency exchange rates are affected by a wide range of factors, including national and international financial and economic conditions and political and natural events. The effect of normal market force may at times be countered by intervention by central banks and other bodies. At times, exchange rates, and price linked to such rates, may rise or fall rapidly.

RMB Currency Risk: RMB is subject to the PRC government's control (for example, exchange restrictions). Besides, there is no guarantee that RMB will not depreciate. If customers convert Hong Kong Dollar or any other currency into RMB so as to invest in RMB denominated investment products and subsequently convert the RMB redemption proceeds back into Hong Kong Dollar or any other currency, you may suffer a loss if RMB depreciates against Hong Kong Dollar or other currency.

Exchange controls or other monetary measures may be imposed by a government, sometimes with little or no warning. Such measures may have a significant effect on the convertibility or transferability of a currency and may have unexpected consequences for a FX Transaction that the Customer is holding.

Please refer to the risk disclosures in the specific documentation of these products before making a decision to invest using margin.