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Take advantage of foreign exchange movements without
having to liquidate your other investments. Buy and
sell currencies up to 10 times your deposit amount.
What You Get
- Interest paid on your time deposit as margin
- An amount up to 10 times your margin amount for
trading
- Flexibility to trade spot contracts or forward
contracts
- Tenure: from minimum 2 days (spot) up to 6 months
- Wide selection of trading currencies
- 24-hour trading services to let you trade or
place your orders
- Personal attention and expertise of a Treasury
Services Manager
What You Need
- Minimum US$50,000 deposit for a US$500,000 trading
line
- Minimum trade size of US$250,000 for each contract
How To Apply
- Contact your Relationship Manager
- Or complete the Account Opening Application if
you are not a customer
Important:
The risk of loss in leveraged foreign exchange
trading may be substantial. You may sustain loss 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, and 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 shall remain liable for any resulting deficit
in your account. You should therefore carefully consider
whether such trading is suitable in the light of your
own financial position and investment objectives.
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How does it work?
An example
Mr Lee uses his deposit to open a margin line equivalent
to 10 times his initial deposit of US$50,000.
On March 19, he has the view
that USD will strengthen against the Japanese Yen.
Thus he decides to buy USD
against the YEN at the rate of USD 1 = YEN 117.00.
On March 19, he commits to buy USD 500,000
and sell YEN for settlement on April 19 (1 month forward).
| Exchange
Rate |
Buy |
Sell |
Value
Date |
| YEN 117 / USD |
USD
500,000 |
YEN 58,500,000 |
April
19 |
Depending on the performance of the currency
market, 2 possible outcomes can happen:
Scenario
1: USD Strengthens – Mr Lee makes
profit
On April 12, the USD strengthens to YEN 120
and he decides to take profit by buying back
YEN 58,500,000 and selling USD. |
| Exchange Rate |
Buy
|
Sell
|
Value
Date |
| YEN
120 / USD |
YEN
58,500,000 |
USD
487,500 |
April
19 |
| Mr Lee’s profit
of US$12,500 (USD 500,000 less USD 487,500) will
be credited to his account on April 19.
This represents a return of 25% on his initial
investment of USD 50,000. |
Scenario
2: USD Weakens – Mr Lee incurs
a loss
On April 12, the USD weakens to YEN 114. Mr
Lee buys back YEN 58,500,000 and sells USD. |
| Exchange Rate |
Buy
|
Sell
|
Value
Date |
| YEN
114 / USD |
YEN
58,500,000 |
USD
513,158 |
April
19 |
Mr Lee sustains
a loss of US$13,158 (USD 500,000 less USD 513,158)
which will be deducted from his account on April
19.
This represents a loss of 26.3% on his initial
investment of USD 50,000. |
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What are my risks?
- The risk of loss in leveraged foreign exchange
may be substantial.
- You may stand to gain as well as lose.
- You should discuss with your Relationship Manager
to ascertain if this product is suitable for you
in the light of your financial position and investment
objectives.
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Currency Trading Account
