Common Problem

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

A : 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;


      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.

 

Q : Under what circumstances will my placed order be rejected?

A : 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.

Q : Under what circumstances will i receive a margin call？ 

A : 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.

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

A : 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.。

Q : When should i fulfill the margin call requirement？ 

A : 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.

Q : How to calculate the interest on Margin Account？ 

A : 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)

Q : What is the major concern when doing postal application？

A : A personal cheque with amount not less than HK$10,000 is essential when doing a postal application. Below are               some kindly reminders:
 

  • The presented name on cheque has to be totally matched with the HKID card/passport of applicant.
  • Cheque headings should put “「Conrad Investment Services Limited” .
  • Signature on cheque has to be totally matched with the application form.
  • Cheque has to be issued by Hong Kong Licensed Banks
  • Cheque has to be single named, join bank account is not accepted.
  • Join Account application should submit two separate personal cheques

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

A : 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.

Q : What type of trading accounts does Conrad offer?


A : Custodian Account (P A/C)

      Customers can trade HK securities that listed on the HKEx. The amount of executed BUY (SELL) transactions                   including commissions and other related expenses will be Deducted from (Added into) their custodian accounts.               Customers can also place orders via internet tradingplatform; however, orders can only be placed when there is                 sufficient cash balance (Buy) or sufficient shares of stock(Sell).


      Margin Account (M A/C)

      Customers can trade HK securities through margin financing. According to individual stock's marginal value (Refer           to Margin list), full payment of trade proceeds might not be required on the settlement date. Customers can also                 place orders via internet trading platform; however, orders can only be placed online when there is sufficient cash             balance (Buy) or sufficient shares of stock (Sell).