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What is margin trading? |
With securities margin trading, you only need to place a small part of the purchase amount as deposit and Phillip will finance the remaining part. 1 You can benefit from more flexible use of funds.
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What are the differences between Margin Account and Cash Account? |
Using margin trading, you can make use of gearing effect to increase your purchasing power up to 5 times your initial deposit and to enhance potential investment returns.
Example 1*:
Assume client holds $50,000 cash for investments and would like to purchase Stock A
Purchase price of Stock A: $100.00
Selling price of Stock A: $110.00
Margin ratio of Stock A: $80%
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Cash Account |
Margin Account |
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Cash Hold |
$50,000 |
$50,000 |
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Purchasing Power |
$50,000 |
$250,000 |
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Number of Shares Bought |
500 |
2500 |
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Amount Sold* |
$55,000 |
$275,000 |
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Profits |
$5,000 |
$25,000 |
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Returns |
10% |
50% |
Potential returns can be up to 5 times larger through margin trading. 2
*The above example does not consider transaction fees, commissions, interests and other miscellaneous fees.
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High Margin Ratios |
Phillip Securities enables you to utilize your capital more effectively by providing flexible margin financing facility.
* IPO Subscription - Up to 100% of the market value
* Hang Seng Index Constituent Stocks and Listed ELI - Up to 80% of the market value
* HSCCI / HSCEI constituent Stocks - Up to 75% of the market value
* Bond Securities - Up to 60% of the market value
* Overseas Stocks - Up to 50% of the market value
* GEM Stocks - Up to 40% of the market value
* Warrants - Up to 30% of the market value
| Privileged Interest Rate |
Our privileged interest rate 3 reduces your investment cost and hence enhances potential returns. Also, there is no minimum borrowing amount, borrowing period, or monthly minimum repayment.
| Self-owned Financing Services |
Financial integrity is always the emphasis of Phillip Securities. The securities bought by you will not be pledged under the third party (including banks and finance companies).
| Solid Foundation |
Phillip Securities Group, established in 1975, owns 15 enterprises with global presence in eight regions: Singapore, Thailand, Malaysia, Hong Kong, Indonesia, Sri Lanka, Australia and the U.K. Over 15,000 staff serves our worldwide clients. Phillip Securities (HK) Company Ltd. was founded in 1984 and our branch network covers Admiralty, Central, Sham Shui Po, Shatin and Tuen Mun.
| Fast and Reliable Securities Trading |
Phillip Securities offers margin account client with professional securities trading services.
l Trade orders received by us are directly transmitted to the AMS/3 securities trading system of Hong Kong Stock Exchanges and Clearing House. Equipped with 7 dealing seats at the Hong Kong Stock Exchange, we can ensure to provide speedy execution of transaction order.
l You can place orders through multi-channels such as Personal Touch, Internet and Tele-Broker system (Automatic Telephone Trading Service).
| Easy Account Opening Procedures |
To enjoy the benefits of our margin financing service, you can just come to one of our branches to open a margin account. For any queries, please call our Customer Service Hotlines at 2277-6555, by email or browse our web site.
| Other Privileges |
1. Phillip Securities reserves the rights to amend the
margin ratio of each stock from time to time basis.
2. Attention: Securities trading involves an element
of risk & their prices are subject to upward or downward adjustment.
3. Phillip Securities will change the interest rate
of margin financing if necessary.
Remark: We reserve the rights to change the arrangement, fees, terms and condition where applicable for the margin financing service.