Securities

What are Enhanced Limit Order, Limit Order,At-auction Order, At-auction Limit Order and Special limit Order?

  • Enhanced limit order (EL)
  • Enhanced limit order is similar to the limit order except that it will allow matching of up to 10 price queues at a time.The ask order price of ELO can be inputted at 9 spreads lower than the current bid or the bid order price can be inputted at 9 spreads higher than current ask price. Any unfilled quantity of ELO after matching will be stored in the System as a normal limit order at the input order price.
  • Limit order (PL)
  • Order will only be executed at a specified price;
  • Special Limit order (SL)
  • A special limit order will allow matching of up to 10 price queues (i.e. the best price queue and up to the 10th queue at 9 spreads away) at a time provided that the traded price is not worse than the input price. A special limit order has no restriction on the input price as long as the order input price is at or below the best bid price for a sell order or at or above the best ask price for a buy order. Any outstanding special limit order will be canceled and will not be stored in the AMS/3;
  • At-auction order (AO)
  • Order will be executed at the final IEP in the pre-opening session. It will be canceled automatically if it is not being executed. At-auction orders get higher priority than at-auction limit orders during order matching process;
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  • At-auction limit order (AL)
  • Order will be executed at a specified or better price during the pre-opening session and will be placed as a limit order in the market after the pre-opening session if it has not been executed.

Under what circumstances will my placed order be rejected?

  • Order placed is far beyond the market price.*
  • Price beyond 24 spreads within Continuous Trading Session, or exced the current price for 9 times
  • Insufficient cash deposit (Buy) or shares of stock (Sell) when placing online orders
  • Transaction amount exceeds credit limit (not applicable for online trading users)
  • Order is placed during inappropriate period.

Under what circumstances will i receive a margin call？ 

  • Customer would receive our margin call if stock marginable value falls below the amount borrowed.
  • For example:
  • Suppose you own a board lot of HSBC (approx. market value $48,000) and your account show a debit balance of $24,000. Under this situation, you will not receive any margin call since the margin ratio of HSBC is 50%. However, if the price of HSBC falls and its market value becomes $40,000, you will receive our margin call for $4,000 which is needed to settle the differences.

Can i place any new buy order or withdraw cash when i have received a margin call？ 

  • NO. Customer must fulfill their margin call requirement before making any new buy orders. Customer can only withdraw cash if credit balance is available, margin limit would not be able to cash out.。

When should i fulfill the margin call requirement？ 

  • Customer must fulfill the margin level before the next trading day after receiving our margin calls (either by cash deposit, asset-backed stock deposit or sell out stocks in account). If customer fails to fulfill the margin call requirement, we reserve the rights to sell the proceeds without any prior notice.

How to calculate the interest on Margin Account？ 

  • For Margin Account, an interest rate of P+3% (annual rate) will be charged on your debit balance, weekends and public holidays are included in the calculation.
  • Example:
  • Your daily interest of a $10,000 debit balance will be:
  • $10,000 x (P+3)% x (1/365)

If i cannot settle my overdue payment after T+2,can i keep my stock if only paying interest？

  • NO. All Cash Account customers (except Margin Account) must settle their overdue payment after T+2. Please kindly note that we reserve the rights to sell the proceeds without any prior notice for any customer who cannot settle the overdue payment after the specific date.

There any circuit breaker in Hong Kong’s securities market?

  • No, the price of Hong Kong listed and trading securities fluctuates according to market demand and supply.  HKEx does not limit the range of price movement of security on single trading day.

What is odd lot? How to sell the odd lot?

  • Securities of less than one trading unit (i.e. one board lot) is commonly known as an odd lot. If you want to sell odd lots, please call trading hotlines which are 4001200788 for Mainland China and +852 2997 2080 for Hong Kong . Due to the low liquidity of odd lots, their trading prices are usually lower than that of board lots.

What is Closing Auction Session (CAS)?

  • The Closing Auction Session allows orders to be entered into the trading system for a single price auction which consists of a reference price fixing period, an order input period, a no cancellation period, and a random closing period as follows.

What is the applicable period for VCM?

  • VCM is applicable to continuous trading session (CTS), excluding:
  • the first 15 minutes of the morning and afternoon trading session
  • the last 15 minutes of the afternoon trading session
  • the After-Hours Futures Trading session in the derivatives market

How do I trade in the Closing Auction Session?

  • Limit orders not filled in the preceding Continuous Trading Session will be automatically converted into at-auction limit orders in CAS. You can also input new at-auction limit orders before the random closing of the market.
  • If the order input price deviates more than 24 spreads from the nominal or closing price during the Continuous Trading Session, the order will be pending for sending out and it will show 「Ready to send」in E-trade platform. If the order price becomes in the range in the CAS, order will be sent out automatically in the CAS.