Margin Financing
For Margin Lending account, how much deposit is required?
For Margin Lending account, if there were sufficient "Purchase power" , you can start trading anytime.
How much leverage can I get for my Margin Lending account?
That depends on what kind of stock that you are going to buy and you can refer to the list for the Stock Margin Ratio.
What is "Purchase Power?"
"Purchase Power" refers to the highest net amount that you can transact on your Margin Lending account and that is the sum of "Cash Balance" + "Maximum Exposure." If that Purchase Power is equal or less than zero, then you cannot make trade any more. Your "Purchase Power" may vary depends on the risk rating for each eligible stock and is the sum cash balance plus the sum of all Stock Margin Value in a particular portfolio. For cash account clients, the "Maximum exposure" is set to be zero by default. For example, if the purchase power is HKD100,000, you can buy:
- Eligible stocks that worth HKD100,00 or more
- Stocks/ Warrants that worth HKD100,000
When I deposit the HKD to fund my account, when does the "Purchase Power" be updated?
If you make the payment via bank before 12:00pm (Hong Kong time), we shall update your "Purchase Power" and account balance on the same date. If you make the payment via a cheque deposit, your account and "Purchase Power" will only be updated once the cheque payment is settled.
What is "Available Balance?"
The maximum amounts that can be withdrawn with one specify date.
Cash Balance + settled amount for the day + Cash Movement – Cash on Hold–Today Bought
What is "Maximum Exposure?"
The maximum amount that a client can borrow from KVB Kunlun and this ratio will be provided by KVB Kunlun base on the financial position of the client.
This may exceed the Stock Margin Value of the Eligible stocks.
What is "Available Margin Value?"
Comparing "Available Balance" and "Maximum Exposure" , which ever is lower.
What is "Cash on Hold?
The total amount of cash has not been settled for the specified date.
When a client makes an order, the "Available Balance" should be deducted with the same amount as shown on the change in "Cash on Hold" ; unless
- 1. Order was executed
- 2. Order was rejected
- 3. Market has closed
What is "Cash Movement?"
The net amount of capital inflow or outflow for the account during the office hours
What is "Today Bought" ?
The total amount of securities the client bought for the specified date.
What is "Today Sold" ?
The total amount of securities the client sold for the specified date.
What is "Net Buy/Sell?"
The net amount of securities the client either bought or sold for the specified date.
What is "T+1 Balance?"
The amount for T + 1 day settlement.
What is "Eligible Stocks?"
There is a Stock Margin Ratio for every "Eligible Stock" on the list; you can refer to this ratio for stocks margin financing.
What is Stock Margin Ratio?
In general that is around 20%~70%, Total loan amount / Total eligible stock lending value. Please click here for the most updated list.
What is "Stock Margin Value?"
Stock Margin Value = The real-time value for Eligible stocks x Margin Ratio
What is "Portfolio Margin Value?"
The sum of all Stock Margin Value in a particular portfolio.
