A financial service to help grasp the opportunities in the foreign exchange market
Are you looking for foreign exchange opportunities in currency market with greater flexibility? To help to meet your needs, we are pleased to introduce the following services.
Currency Switching
How does it work?
By selecting a conversion currency and agreeing on the exchange rate, you can "unlock" your time deposit and switch the currency for unlimited times before your deposit's maturity date. On the deposit maturity date, your deposit will automatically be converted to your final designated currency at the agreed exchange rate of the forward contract(s).
What are the options for Currency Switching?
- 9 major currencies to choose from - USD, GBP, JPY, EUR, CHF, AUD, CAD, NZD and HKD
- Minimum contract size is only USD20,000, or its equivalent
- Unlimited conversions (conversion instruction must be given before deposit maturity)
- No commission is charged on forward contract
Foreign Exchange Margin Trading Services
To ensure your dollar is working more efficiently for you, we provide the Foreign Exchange Margin Trading Services with higher flexibility:
- Trade up to 20 times of your margin deposit
- Minimum margin deposit of USD10,000 only
- Interest earned on margin deposits
- 8 trading currencies (AUD, CAD, CHF, EUR, GBP, JPY, NZD, USD) available, plus a wide choice of cross-currency combinations
Foreign Exchange Leveraged Trading Services
Foreign Exchange Leveraged Trading Services help you implement your investment strategy with greater flexibility:
- You can sell short and buy long on 9 major currencies, including AUD, CAD, CHF, EUR, GBP,
JPY, NZD, USD and HKD, offering a total of 29 cross-currency combinations - You can trade up to 10 times of your margin deposit
- The minimum margin deposit is only USD2,500 and the minimum contract size is
USD20,000
Non-Deliverable Forward
What is a Non-Deliverable Forward?
A Non-Deliverable Forward (“NDF”) is a committed “net cash settled” forward foreign exchange contract with the following features:
- No physical exchange of the principal amount at maturity date.
- Only the difference between the contracted NDF exchange rate (“Forward Rate”) and the prevailing spot exchange rate (“Settlement Rate”) on an agreed notional amount denominated in a freely convertible currency (e.g., US dollar) will be settled in cash in US dollar on maturity.
- No delivery of the underlying reference currency e.g., Chinese Yuan (CNY).
Major Features
- NDF ranges from Chinese Yuan, South Korean Won, Indian Rupee to other non-convertible or thinly traded currencies. At the moment, the Bank is only offering Chinese Yuan NDF.
- Contracts with 1, 2, 3, 6 and 12 months tenor are currently offered.
- The notional amount of an NDF order must be of a minimum amount of USD10,000.
- You can trade up to 5 times* of your margin deposit.
Foreign Exchange Order Watching Service (For Priority Banking Customers only)
The complimentary Foreign Exchange Order Watching Service provides you with both convenience and timely assistance. We will watch the market 24 hours a day on your behalf to help you capture foreign exchange opportunities.
- We monitor the market 24 hours a day to give you peace of mind. When the exchange rates reach your pre-determined level, we will automatically execute your pre-set orders , to help you capture your desired price levels.
- An extensive range of standing orders to suit your needs
| Target order | When the exchange rate reaches your pre-determined level, your instructions will automatically be carried out. |
| Stop Loss Order | When the market rate moves beyond your specified stop-loss level, your order will be executed at the next available rate. |
| One-cancel-the-other Order | Combining the benefit of Target Order and Stop Loss Order, no matter you want to buy or sell a currency, you can pre-set a pair of orders of the same amount with different price levels. If one of them is executed, the other will be voided automatically. |
| If-done Order | You can place a pair of orders of the same amount for the same currency simultaneously. The second order will become effective only if the first one has been executed. |
- 9 major currencies – AUD, CAD, CHF, EUR, GBP, HKD, JPY, NZD and USD are available for your selection, helping you to make the most of your currency investment. The minimum transaction amount for the Foreign Exchange Order Watching Service is HKD200,000 or equivalent.
Special Remarks for Mobile Notification Service:
- To pre-set standing orders, please call our customer service hotline from Monday to Friday (9am to 9pm), or visit any branch (9am to 4:30pm)
- All orders are "good-till-weekend" and will be avoided automatically if they are not executed at 2:30am Saturday Hong Kong time (or the last trading day of the week). If the Friday is a Hong Kong Public Holiday, the trading cut-off time will be at 2:30am on Friday.
- The minimum transaction amount is HKD200,000 or equivalent of any currency accepted by us.
- If the order is executed at or before 5:30pm on a trading day, the relevant forex trading transaction amount resulting from the executed order will be settled on the same day by crediting to or debiting from your designated deposit amount. If the order is executed after 5:30pm on a trading day, the relevant forex trading transaction amount resulting from the executed order will be settled before noon on the next trading day by crediting to or debiting from your designated account.
Risk Disclosure Statements
Currency Switching: Independent assessment of the risks and appropriateness of the transaction in the light of your own objectives and circumstances, including the possible risks and benefits of entering into such transaction, should be considered before entering into any transaction. Your total return may be lower than that of your original time deposit, depending on the agreed exchange rate in the forward contracts.
Foreign Exchange Leveraged/ Margin Trading Services: The risk of loss in leveraged foreign exchange trading can be substantial. You may sustain losses in excess of your initial margin funds. 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 margin funds. If the required funds are not provided within the prescribed time, your position may be liquidated. You will remain liable for any resulting deficit in your account. You should therefore carefully consider whether such trading is suitable in light of your own financial position and investment objectives.
Non-Deliverable Forward: Prior to investing in this product, customers should read the general terms and conditions set out in the Bank’s Chinese Yuan Non-Deliverable Forward Terms (including the Risk Disclosure therein) and its Additional Provisions together with any other terms and conditions or customer agreements to which the transaction may be subject. This product is not principal protected. Customers bear a foreign exchange risk should the exchange rate between the Chinese Yuan and the US dollar (or other specified currencies) change between the time the transaction is entered into and the time it is settled. The risk of loss in leveraged foreign exchange trading can be substantial. You may sustain losses in excess of your initial margin funds. 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 margin funds. If the required funds are not provided within the prescribed time, your position may be liquidated. You will remain liable for any resulting deficit in your account. You should therefore carefully consider whether such trading is suitable in light of your own financial position and investment objectives. The NDF market is not particularly liquid and the bid-and-offer spreads are sometimes probably prohibitively high. In some cases, it may be difficult for customers to enter into a transaction or square off their positions. Customers will be expected to hold their contracts till settlement date.