If you want to capitalize on foreign exchange movements without having to liquidate your other investments, you will find these two facilities very useful.

You start by pledging a minimum deposit of US$50,000 or its equivalent to Citibank, earning competitive interest. In addition, with this deposit as margin, you can then proceed to buy and sell currencies up to a maximum of 10 times your margin amount, ie US$500,000.

You have the flexibility of trading spot contracts or forward contracts from a minimum tenure of 2 days (spot) right up to 6 months. Each contract should be for a minimum trade size of US$250,000 or equivalent. In the event that losses on contracts reach 70% of the margin amount, you will be duly informed. You then have 24 hours to deposit additional margin to keep the position open.

Once you pledge your time deposit with us, we will extend a loan 5 times the amount of your deposit to you. You can then use this to re-invest in other currencies up to a maximum of 2 currencies.

The Leverage Account also has a "forward exchange contract" that you can use to control exchange risks. Our Relationship Managers will help you calculate your break-even position on your various investment options and work through some examples to help you decide if a Leverage Account is relevant for you.

Minimum deposit is US$50,000 for a US$500,000 trading line.

Leverage and Currency Trading Accounts are suitable for sophisticated investors who wish to trade in foreign exchange.

Foreign currency investments are subject to exchange rate fluctuations which may provide both opportunities and risks. You should therefore carefully consider whether such a foreign exchange investment is suitable in light of your own financial position and investment objectives.
 
 
 
 
 

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