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You start by pledging a minimum deposit of US$50,000
or its equivalent to Citibank, earning competitive
interest.
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 Loan 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$250,000 trading
line.
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
investment objectives, your financial means and your
risk profile.
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