Interactive Brokers may deposit cash to cover margin requirements for positions held in Hong Kong Futures Exchange (HKFE) or Hong Kong Stock Exchange (SEHK) contracts. The interest earned on that cash may be less than what is earned on other investments. To account for this difference, Interactive Brokers computes a Margin Financing Charge. This is a monthly charge in HKD that accrues on overnight HKFE and SEHK margin balances. To the extent that an account holds sufficient HKD cash to cover the margin balance, the charge is computed using a rate equal to the difference between the HKD credit interest rate and the rate that Interactive Brokers earns on margin deposits. The remaining margin balance, if any, is charged at a rate equal to the difference between the standard HKD benchmark rate and the rate that Interactive Brokers earns on margin deposits.
Additional Information
- For credit interest rates and benchmark rates, please reference our Pricing – Interest Rates webpage.
- Who is subject to the Margin Financing Charge?
- What products are subject to the Margin Financing Charge?
- How is the Margin Financing Charge being calculated?
- Why did we introduce the Margin Financing Charge?
- Where can I find details of the Margin Financing Charge fees?
- Where can I find the statutory margin requirements of my positions in order to compute the Margin Financing Charge?
- If I hold long stock options only, would I be subject to the Margin Financing Charge?