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FAQ of on-line securities trading

1. FAQ of Login ?

• How to login my accounts?
You can download Alpha i mobile trading app, or go to www.cfsg.com.hk to log into your account.

• What if I forgot my login password?
You can reset your password by clicking “Forget Password” on the login page of trading platform.

2.Securities Margin Trading Account?

Hong Kong Market
• How many stocks can be traded via the electronic margin trading account?
Our Finance Department has selected over 200 companies' shares listing on the Stock Exchange of Hong Kong Limited that can be traded on margin financing via the Electronic Margin Trading account. The respective margin ratios of the shares are listed on the Stock Margin Ratio List.

• What should I be aware of before opening such a margin account?
Investors should be noted that this type of account gives greater flexibility on stock trading, as its leverage effects will generate higher potential profit if the market moves in a favorable direction. However, the potential loss can also be great if the market moves adversely. It is strongly recommended that investors should have sufficient knowledge in shares margin trading before engaging in margin trading.
Please also refer to the Account Opening Document and Risk Disclosure Statement.

• Can I trade warrants with Electronic Margin Trading account?
Yes, you are able to trade warrants with Electronic margin trading account. However, at least 50% of the warrants purchased amount is required in your account prior to placing a Buy order on warrants (Detail please refer to the Trading Policy of Electronic Margin Trading).

• At what level of margin will I have to maintain? When will a margin call arise?
On T & T+1 - The maintenance margin level is 90%, which means that a margin call will arise if the total market value of purchased stock(s) has declined 10%.

Example 1:
On 1/1/2000 (T) - An investor buys 3,200 shares of HSBC (0005.HK) at $85 with margin ratio of 0.6.
Market value of this portfolio is: $85 * 3,200 -> $272,000
On 1/1/2000 (T) - The market value of HSBC has been dropped to $75 (11.76% decline from the purchased value). Margin call will be arisen as the market value has declined over 10%.
On 2/1/2000 (T+1) - Investor is required to maintain the difference between market value and purchased value.
Top-up Margin is: $272,000 - $240,000 = $32,000
After T+2 :- Investor is required to maintain the difference between Principal Balance (should be a negative balance) and Total Margin Value of Stocks at less than 8%. A Margin call arises when the difference reaches the Top-up Margin, which is equal to or above 8% of the Principal Balance.

Example 2:
On 1/1/2000 (T) - An investor buys 3,200 shares of HSBC (0005.HK) at $85 with margin ratio of 0.6.
Margin value of this portfolio is: $85 * 3,200 * 0.6 -> $163,200
On 3/1/2000 (T+2) - The market value of HSBC has been dropped to $77.25 (9% decline from the purchased value).
If the investor opened the position with $110,000:
Total Margin Value of Stocks = $77.25 * 3,200 * 0.6 -> $148,320
Top-up Ratio = [(-$162,000 + $148,320) / -$162,000] -> 8.4%
As the Top-up Ratio is over 8%, the Top-up Margin Value equals:
($162,000 - $148,320) = $13,680

Whenever a margin call arises, it is the client's responsibility to fulfill the margin call within one working day.
• In what way will I be informed for a margin call?
As there is a need for margin call, we will inform you via:
1. Email notification
2. The "Call Margin" section in the internet trading hall will be updated accordingly
3. Telephone call

3.Commodities Trading Account?

Hong Kong Market
• What investment products can I trade via the electronic commodities trading account?
The electronic commodities account holders can trade Index Futures, Index Options and Stock Futures.

• What is the difference between electronic trading system and open outcry commodities markets?
The electronic trading systems such as GLOBEX and ACE are used to extend trading time after the close of the traditional open outcry trading hours to offer investors additional trading opportunities.
The open outcry is the primary market for commodities trading which lends more liquidity to the market because of more number of trades involved and the ability to negotiate price face to face.

4. FAQ of Setting ?

• How long does it take to update my personal settings?
For login and trading password, they will be updated instantly upon submission of new information. For bank accounts and other personal information such as address, it generally takes 2 days for updating.