Precious Metals and FX Margin

The Precious Metal / FX Margin Trading Services of Bank of China (Hong Kong) Limited (the "Bank") allow you to buy or sell precious metals and currencies according to your investment appetite and the market outlook. Moreover, you can gear up your investment capital through the leveraged ratio to capture a higher potential return in volatile markets.

Various Choices in Precious Metals and Currencies

The Bank offers various choices in precious metals and currencies to cater for your investment needs.

  • Precious metal margin: London Gold, London Silver, Tael Gold and Kilo Gold
  • FX margin: any 2 currencies among HKD, USD, CNY, AUD, CAD, CHF, EUR, GBP, NZD and JPY

Margin Fund of as Low as 5% to Gear Up Your Capital Potential

The cash margin1 is as low as 5% for leveraged trading of up to 20 times. Time deposit at the Bank can be used as collateral in lieu of cash margin, which enables you to capture investment opportunities while earning interests.

Flexible Standing Orders

There is a wide selection of standing orders, including "Single", "One-Cancels-the-Other (OCO)" and "If-Then" orders. The validity of standing orders is up to 14 days

Position Squaring Appointment

If you hold more than one buy and sell contracts for the same pair of currencies or precious metal, you can place position squaring appointment by selecting the buy contract(s) and the sell contract(s) before the value date.

Free Instant Quotes and Alert Services

You can obtain instant quotes of currency exchange rate and precious metal price, and enquire the status of your standing orders, net position, and other account information via our Internet Banking or Mobile Banking free of charge. Once the standing order is executed, the Bank will send you a SMS notification.

Easy and Simple Account Opening

You can log in our Internet Banking, or visit any of our designated branches for account opening.

Multiple Trading Channels and Extended Trading Hours

The Bank provides multiple trading channels, including Internet Banking, Mobile Banking and Manned Trading Hotline. Together with extended trading hours, investment has never been easier.

Trading Channels and Hours (Hong Kong time)2

Trading Channels / Trading Hours
Precious Metal Margin FX Margin
Local London Gold (LLG) and Local London Silver (LLS) Tael Gold (99G)
and Kilo Gold (KLG)
  • Internet Banking
  • Mobile Banking
  • Manned Trading Hotline
Mondays to Fridays
7:00am – 4:00am, the following day
Mondays to Fridays
9:00am – 12:00noon,
2:00pm – 5:00pm
Mondays to Fridays
5:00am – 4:00am,
the following day

Lot Size for Popular Trading Pairs3

Precious Metal Lot Size
Local London Gold (LLG / USD) 50oz
Local London Silver (LLS / USD) 2,500oz
Tael Gold (99G / HKD) 50 taels
Kilo Gold (KLG / HKD) 2,500g
Currency Lot Size
AUD / USD AUD 25,000
USD / CAD CAD 25,000
USD / CHF CHF 25,000
EUR / USD EUR 25,000
GBP / USD GBP 25,000
USD / HKD HKD 250,000
USD / JPY JPY 2,500,000
NZD / USD NZD 25,000

Notes:

  1. The initial cash margin requirement is calculated on the basis of market value of the contract amount or its equivalent in other currencies, subject to any adjustment by the Bank at its sole and absolute discretion.
  2. Trading hours will be announced separately during the closure of Hong Kong or other major financial markets.
  3. There are other trading pairs available for your choice, please refer to the "Instruction – Precious Metal / FX Margin" for details. The trading pairs are subject to revision by the Bank from time to time without prior notice.

     

The following risk disclosure statements cannot disclose all the risks involved. Prior to trading or investment, you should collect and study the information required for your investment. You should take your own independent review and seek independent advice, if necessary, on whether this product is suitable for you in light of your risk appetite, financial situation, investment experience, investment objectives and investment horizon. If you are uncertain of or have not understood any aspect of the following risk disclosure statements or the nature of and risks involved in trading or investment, you should seek independent advice.

Risk Disclosure in respect of Precious Metal / FX Margin Trading

The risk of loss in leveraged foreign exchange trading and precious metals trading can be substantial. You may sustain losses in excess of your initial cash margin. 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 cash margin. If the required cash margin or interest payments are not provided within the prescribed time, your position may be liquidated. You will remain liable for any resulting deficit in your account and interest charged on your account. A demand for additional cash margin is not a precondition to, and does not in any way limit, our right to liquidate your open positions according to the relevant terms and conditions. You should therefore carefully consider whether such trading is suitable in light of your own risk appetite, financial situation, investment experience, investment objectives and investment horizon.

If your margin contract or margin fund involves Renminbi, you are subject to the RMB Conversion Limitation Risk.
Conversion Limitation Risk (Only applicable to Individual Customers)
RMB is currently not fully freely convertible. Individual customers can be offered CNH rate to conduct conversion of RMB through bank accounts and may occasionally not be able to do so fully or immediately, for which it is subject to the RMB position of the banks and their commercial decisions at that moment. Customers should consider and understand the possible impact on their liquidity of RMB funds in advance.

Conversion Limitation Risk (Only applicable to Corporate Customers)
RMB is currently not fully freely convertible. Corporate customers that intend to conduct conversion of RMB through banks may occasionally not be able to do so fully or immediately, for which it is subject to the RMB position of the banks and their commercial decisions at that moment. Customers should consider and understand the possible impact on their liquidity of RMB funds in advance.

Disclaimer

This promotional material is for reference only. It is not and does not by itself constitute any offer, solicitation or recommendation to buy, sell or provide any investment product or service. This promotional material is issued by Bank of China (Hong Kong) Limited. Its contents have not been reviewed by any regulatory authority in Hong Kong.