1. What Is a Margin Account
A Margin Account allows you to amplify your trading buying power beyond your own capital by using the margin limit provided by the platform, thereby improving capital efficiency.
Using a Margin Account:
You may trade securities using cash plus your margin limit;
Margin-eligible stock holdings can serve as account margin assets;
Different stocks are subject to different margin requirements;
If the account’s risk level becomes insufficient, this may trigger a Margin Call or forced liquidation.
You can view the following on the “Margin Status” page in the App:
Margin Limit
Used Limit
Maximum Buying Power
Available Buying Power
Margin Level
Risk Control Status
You may also request an adjustment to your margin limit from the “Margin Status” page.
2. Core Concepts of a Margin Account
1. Initial Margin (IM)
IM refers to the minimum margin requirement needed to open a position.
Different stocks correspond to different IM ratios.
For example:
A stock’s IM = 50%
This means that to buy $100 USD worth of that stock, you need at least $50 USD of your own capital.
The higher the IM, the lower the leverage available.
2. Maintenance Margin (MM)
MM is the minimum margin requirement your account must continuously maintain while holding a position.
When your account’s net assets fall below MM:
The system will trigger a Margin Call notification;
Your account will enter a “Danger” status. If the account remains in “Danger” status for more than 48 hours, it will face the risk of forced liquidation.
You will need to add funds or close positions to reduce risk.
3. Force Liquidation Margin (FM)
FM is a lower-tier risk threshold. When your account’s net assets fall below FM:
Your account will face the risk of forced liquidation.
The platform may liquidate part or all of your holdings without prior notice.
3. Multi-Currency Holdings and Margin Limit
Your margin account can hold funds in multiple currencies simultaneously, such as USD and HKD. Stocks in different markets are settled in their corresponding currencies — U.S. stocks are settled in USD, and Hong Kong stocks are settled in HKD.
1. Margin Usage Is Determined Separately by Currency
Margin is considered “used” for a given currency as soon as that currency’s cash balance turns negative.
Balances across different currencies cannot offset one another. Even if your USD balance is sufficient, it cannot be used to cover an HKD deficit, and vice versa.
For example: if your account holds USD but no HKD, and you buy Hong Kong stocks, your HKD balance will turn negative — this counts as using margin and will begin accruing interest, even if your USD balance remains sufficient.
2. The Margin Limit Is Shared Across Currencies
Whether your outstanding balance is in HKD or USD, it draws from the same shared margin limit. Balances in different currencies are converted at the real-time exchange rate and summed together to determine your “Used Limit.”
On the “Margin Status” page, the “Used Limit” section can be expanded to show the outstanding balance broken down by currency.
Because outstanding balances must be converted before being counted toward your limit, exchange rate fluctuations can cause your Used Limit to change. Your remaining limit may increase or decrease due to exchange rate movements even if you haven’t made any trades.
3. Interest Is Calculated Separately by Currency
HKD and USD outstanding balances accrue interest independently and are not combined. Margin interest rates may differ between currencies.
4. Account-Level Margin Calculation
The account-level IM / MM / FM are not independently set fixed figures.
They are the sum of the margin requirements corresponding to all stock positions held in the account. Positions across multiple markets are converted at the exchange rate before being combined.
Calculation method:
Account Initial Margin (IM) = Σ (Position Market Value × Stock’s IM Ratio)
Account Maintenance Margin (MM) = Σ (Position Market Value × Stock’s MM Ratio)
Account Force Liquidation Margin (FM) = Σ (Position Market Value × Stock’s FM Ratio)
Example: Account-Level Margin Calculation
Assume your account holds both U.S. and Hong Kong stocks, with an exchange rate of 1 USD = 7.84 HKD:
Stock | Market Value | IM | MM | FM |
Stock A (U.S.) | $10,000 USD | 50% | 40% | 35% |
Stock B (U.S.) | $20,000 USD | 70% | 60% | 55% |
Stock C (HK) | 78,400 HKD | 50% | 40% | 35% |
Margin requirements for Hong Kong stocks are first calculated in HKD. If your account’s display currency is USD, these amounts are converted to USD and included in the overall account total:
Stock C’s IM = 78,400 × 50% = 39,200 HKD ≈ $5,000 USD
Stock C’s MM = 78,400 × 40% = 31,360 HKD ≈ $4,000 USD
Stock C’s FM = 78,400 × 35% = 27,440 HKD ≈ $3,500 USD
Overall account totals (displayed in USD):
Account IM = 10,000 × 50% + 20,000 × 70% + 5,000 = $24,000 USD
Account MM = 10,000 × 40% + 20,000 × 60% + 4,000 = $20,000 USD
Account FM = 10,000 × 35% + 20,000 × 55% + 3,500 = $18,000 USD
This means (when displayed in USD):
If the account’s net assets fall below $20,000 USD, a Margin Call will be triggered;
If the account’s net assets fall below $18,000 USD, forced liquidation may be triggered.
If you switch to HKD display, the figures above will be converted accordingly at the exchange rate, but the risk determination outcome remains unchanged.
Please note that the exchange rate used in this example is for illustration only; actual calculations are based on the system’s real-time exchange rate. When the exchange rate changes, the converted margin requirement for Hong Kong stock positions will change accordingly.
5. Equity Explained
Equity is a key metric used in margin account risk calculations.
Calculation method: Equity = Cash Balance + Total Market Value of Stock Holdings
Cash in multiple currencies and holdings across multiple markets are converted at the exchange rate and combined for this calculation.
The system continuously compares Equity against IM / MM / FM in real time to determine the account’s risk status.
Account Risk Status Explained
1. Equity ≥ IM
When Equity is above the account’s Initial Margin (IM):
The account status is normal;
You may continue to open new positions;
The account still has remaining buying power.
2. MM ≤ Equity < IM
When Equity is below the account’s Initial Margin (IM):
The account’s buying power has been fully utilized;
You may not open new positions;
However, the account has not yet entered Margin Call status.
3. FM ≤ Equity < MM
When Equity is below the account’s Maintenance Margin (MM):
The account will enter “Danger” status;
The system will trigger a Margin Call;
You will need to deposit funds or partially close positions promptly to reduce risk.
The system will send Margin Call notifications via App message and your registered email.
4. Equity < FM
When Equity is below the account’s Force Liquidation Margin (FM):
The account’s risk has significantly exceeded the acceptable threshold;
The system may execute forced liquidation at any time;
The platform reserves the right to liquidate part or all of your holdings without prior notice.
6. Buying Power Explained
1. What Is Buying Power
Buying Power indicates the maximum additional value of stock your account can currently purchase.
Buying Power is affected simultaneously by the following factors:
The stock’s IM ratio
Remaining margin limit
Available cash in the order currency
Margin already used by existing positions
Funds frozen by unfilled orders
2. How Buying Power Is Calculated
For a stock with IM = 100%:
Available Buying Power = MIN(Maximum Buying Power, max(Available cash in order currency, 0) + Remaining Margin Limit)
Where:
Maximum Buying Power = Stock Market Value + Cash − Initial Margin Used by Positions − Frozen Cash − Initial Margin Occupied by Unfilled Orders
Note the following differences in calculation scope:
Maximum Buying Power: the overall result across all currencies and all markets in the account, after conversion;
Available Cash: counted only in the currency corresponding to the market where the order is placed;
Remaining Margin Limit: shared across all currencies.
3. Example 1: Buying Power When the Margin Limit Is Sufficient
Assume:
Account USD cash: $10,000 USD
Remaining margin limit: $50,000 USD
Stock X’s IM = 60%
Since IM = 60%, the theoretical maximum leverage is approximately:
1 / 60% = 1.67x
Therefore:
Maximum position value that can be opened = 10,000 / 60% ≈ $16,667 USD
Since the margin limit is sufficient ($50,000 USD), the account’s actual maximum purchase is:
≈ $16,667 USD worth of Stock X
Of which:
Approximately $10,000 USD comes from own funds
Approximately $6,667 USD comes from margin
4. Example 2: Buying Power When the Margin Limit Is Insufficient
Assume:
Account USD cash: $10,000 USD
Remaining margin limit: $3,000 USD
Stock X’s IM = 60%
Although theoretically, based on IM, you could purchase:
10,000 / 60% ≈ $16,667 USD
Since the remaining margin limit is only $3,000 USD:
Actual maximum purchase = 10,000 + 3,000 = $13,000 USD
Therefore:
Theoretical buying power is determined by IM;
Actual buying power is also constrained by the remaining margin limit.
5. Example 3: Buying Power Differences Across Currencies
Assume (exchange rate: 1 USD = 7.84 HKD):
Account USD cash: $20,000 USD
Account HKD cash: 0
Remaining margin limit: $8,000 USD
IM for the stock to be purchased is 50% in both cases
When Buying U.S. Stocks
Theoretically, based on IM, you could purchase:
20,000 / 50% = $40,000 USD
However, the funds available are USD cash plus the remaining limit:
20,000 + 8,000 = $28,000 USD
Actual maximum purchase = $28,000 USD
When Buying Hong Kong Stocks
Theoretically, based on IM, you could likewise purchase $40,000 USD worth.
However, since the account’s HKD cash is 0, and USD cannot be used to cover HKD expenditures, the only funds available are the remaining margin limit:
0 + 8,000 = $8,000 USD
Actual maximum purchase = $8,000 USD, approximately 62,720 HKD
Therefore:
With the same account, you can purchase $28,000 USD worth of U.S. stocks, but only about 62,720 HKD worth of Hong Kong stocks;
The IM is identical in both cases — the difference comes entirely from the available cash in the order currency.
7. Margin Call Explained
1. When Is a Margin Call Triggered
When the account’s net assets fall below the account’s Maintenance Margin (MM):
The system will trigger a Margin Call notification.
The system will send you a notification via App message and your registered email.
2. How to Resolve a Margin Call
You may reduce your account’s risk in the following ways:
Method 1: Deposit funds into your securities account to increase your account’s net assets.
Method 2: Partially close positions to reduce the margin occupied by your account.
3. Margin Call Time Limit
After a Margin Call is triggered, you must deposit additional funds or close part of your positions within 48 hours to bring the account out of “Danger” status.
Otherwise, part or all of your holdings may be forcibly liquidated.
For more information on margin calls and forced liquidation, please refer to: Margin Account Risk Status and Forced Liquidation Explained
8. Margin Interest Explained
Once you use margin to purchase stocks, your account will incur a margin liability.
If your account’s settled cash balance is negative:
The system will charge margin interest based on the platform’s margin interest rate;
Interest accrues daily and is settled at month-end;
Interest is calculated separately by currency, with HKD and USD liabilities each accruing interest independently;
If your margin liability exceeds your account’s margin limit, your account’s margin interest rate may increase.
The interest rate on margin liabilities may change based on market conditions; the actual rate applied is subject to your statement data. You can view the current interest rate via the stock’s margin financing information page, or by going to [Me] → [Margin Interest Rate].
If you use margin to buy when placing an order, you can view the estimated daily interest for that order in the order preview:
Estimated Daily Interest = Margin Limit Used by This Order × Margin Interest Rate / 365
To avoid continuing to incur margin interest:
You may add funds; or
Partially close positions to reduce margin usage.
9. Risk Disclosure
Margin trading carries leverage characteristics. While it can amplify profit opportunities, it also amplifies the risk of loss.
Please pay special attention to the following:
Stock price fluctuations may cause your account to quickly trigger a Margin Call;
Forced liquidation may occur during extreme market conditions;
The liquidation price may be less favorable than expected;
You remain responsible for any liability that may exist after forced liquidation.
We recommend that you:
Manage your position sizes reasonably;
Maintain sufficient margin;
Avoid excessive concentration in your holdings;
Closely monitor your account’s risk status.
10. Frequently Asked Questions (FAQ)
1. Why does buying power differ between stocks?
Because different stocks correspond to different IM ratios.
The higher the IM:
The lower the leverage available;
The lower the buying power.
2. I have USD in my account — why is my buying power for Hong Kong stocks so low?
In a multi-currency account, whether margin is used is determined separately by currency, and your USD balance cannot be used to cover HKD expenditures. Therefore, when buying Hong Kong stocks, the funds available mainly come from your HKD cash and margin limit, so your buying power is constrained by your remaining limit.
3. I haven’t done anything — why has my remaining margin limit decreased?
Outstanding balances in each currency must be converted at the real-time exchange rate before being counted toward your limit. When exchange rates change, your Used Limit changes accordingly, and your remaining limit will increase or decrease as a result.
4. Why might my account still be forcibly liquidated after closing a position?
This can happen if:
The amount of the position closed is insufficient;
The stock continues to decline;
Market volatility is severe;
In such cases, the account’s risk may not yet be resolved.
5. Under what circumstances would I face the risk of forced liquidation?
Your account will face the risk of forced liquidation in the following situations:
Situation 1: The account has been in “Danger” status for more than 48 hours
Situation 2: The account’s net assets fall below the Force Liquidation Margin requirement
For more information on margin calls and forced liquidation, please refer to: Margin Account Risk Status and Forced Liquidation Explained
6. Why does my buying power change dynamically?
Buying power changes in real time based on the following factors:
Stock price fluctuations;
Changes in position market value;
Funds frozen by unfilled orders;
Margin limit usage;
Adjustments to individual stocks’ margin ratios;
Exchange rate changes when converting across currencies.
Even if you haven’t made any trades, your account’s buying power may change due to market fluctuations.
7. Why does the margin ratio for the same stock change?
The platform dynamically adjusts margin ratios based on the stock’s risk profile.
Contributing factors may include:
Price volatility;
Liquidity;
Market capitalization;
Changes in company fundamentals;
Extreme market conditions or major events.
During periods of significant market volatility, the platform may temporarily raise the IM / MM / FM requirements for certain stocks to help control overall risk.