Who is subject to the Margin Financing Charge?

Only accounts with Margin capabilities are allowed to short stock. Cash and Retirement type accounts are restricted from borrowing and cannot hold a short stock.

Additional Information…

No. A long stock option position is not subject to the Margin Financing Charge because the option premium is paid in full in HKD to the clearinghouse.

Additional Information…

Derivative products on SEHK and HKFE, which include stock options, index options and futures, are subject to the Margin Financing Charge. If you only trade stocks, you are not subject to the charge.

Additional Information…

As a resident of Canada trading stocks you are subjected to Rules-based margin.

The complete margin requirement details are listed in the Margin Requirements section…