FAQ

Trading

Place Orders & Trade Execution

HK Shares & Warrants

HK Shares & Warrants

What methods can I use to place my order?

You can place your order through our online trading system at www.ebshkfg.com or by calling your Investment Consultant.

Last Update: 2016-07-08

How soon can I begin trading?

After you have activated your account and deposited sufficient fund into your account, you can start trading.

Last Update: 2016-07-08

What is the maximum order size?

The maximum notional amount of a single order is HK$30 million (or equivalent). There is also a HKEx limit on lot size for China Connect (A-Share) of 1 million shares per order.

Last Update: 2019-07-10

What is the treatment of odd-lot size orders?

When we receive an order with an odd-lot size, we will submit the order to the Hong Kong Stock Exchange's AMS/3 system (AMS/3) for you. As AMS/3 treats odd-lot size orders separate from the board-lot size orders by placing them into the odd-lot market, the time taken for your order to match/complete may be longer than the normal board-lot size transactions.

Last Update: 2016-07-08

Is there any difference for the trading instructions between normal selling and short-selling?

The most significant difference between these two types of instructions is that the selling price for the short-selling instruction must comply with the 'Tick Rule'.  The 'Tick Rule' means short-selling can not be completed below the best current ask price.  

Last Update: 2016-07-08

Can I loan my stock holdings to the borrower via the SBL Service?

Our SBL Service is a two-way trading platform, which means investors can loan their stock holdings to the borrower through us. If the transaction was done, investors will receive collateral provided by the borrower to secure their loan. The value is equal to 105% of the loaned amount. In the meantime, investors as lenders will enjoy loan fees generated by the loaned stocks.  

Last Update: 2016-07-08

SBL in a nutshell

Last Update: 2016-07-08

HK Shares IPO

How can I subscribe for an IPO?

  • Open a trading account with us.
  • Read through the relevant terms and conditions.
  • Complete an IPO application form.
  • Deposit sufficient funds to your account before the cut-off time.

Last Update: 2016-07-08

Where can I obtain IPO information and application forms?

You can obtain IPO information and application forms from our Customer Service Counter or designated banks.

Last Update: 2016-07-08

Stock Options

When investors have bought a stock option contract, how can they close out their position?

    They can close out their position in one of the following ways:
  • Sell the contract at the current premium value;
  • Exercise the option contract to deliver or take delivery of the underlying stock;
  • Let the option contract expire.

Last Update: 2016-07-08

How long do my 'Stock Options Trader Pro' instructions remain active for?

Unless you cancel your instructions, your orders will remain active until the end of the trading day. If your orders are not filled, they will expire after market close.

Last Update: 2016-07-08

How can I place stock options orders?

You can place your orders through our 'Stock Options Trader Pro' trading platform or call your Investment Consultant.

Last Update: 2016-07-08

What can I do if I want to place a stock options order but do not have access to a computer or the Internet?

You can call your Investment Consultant to place your orders.

Last Update: 2016-07-08

How do I amend or cancel a stock options order?

You can go to the 'Order' tab in the trading platform where you can double click on the order you want to amend or cancel. The order details will pop up, allowing you to amend or cancel the order by clicking on the 'Modify' or 'Delete' button.

(Note : Only orders in 'Queue' or 'Pend' status can be amended or cancelled.)

Last Update: 2016-07-08

Why is the stock options order re-queued after amending?

By changing the price or increasing the quantity of an order, you will be cancelling the original order. The amended order will be treated as a new order and sent to HKATS to be re-queued. To avoid re-queuing, it is suggested that you increase the quantity by submitting a new order instead of amending the original order.

The order will not be re-queued if you reduce the quantity.

Last Update: 2016-07-08

How do I exercise an option contract?

You can call your Investment Consultant to exercise your orders.

Last Update: 2016-07-08

How does the option buyer exercise a stock option? And what should the option seller do?

The buyer has the right to exercise a stock option. For a call option, the buyer has the right to buy a specific amount of the underlying shares at the strike price. For a put option, the buyer has the right to sell a specific amount of the underlying shares at the strike price.

The option seller should prepare the underlying shares for settlement when the call option is being exercised. If a put option is being exercised, the seller should have enough capital for buying the underlying shares from the option buyer.

Please refer to Place & Execute Orders about exercising a stock option in EBSHK e-Stock Options trading platform.

Last Update: 2016-07-08

What is the cut-off time to submit a stock option exercise instruction?

The cut-off time to submit an exercise instruction is 4:20pm of each trading day before the option expiry day.

Last Update: 2016-07-08

How am I alerted if my short position is assigned?

Your short position may be assigned after the market closes. Your investment consultant will notify you by phone or email on the next day.

Last Update: 2016-07-08

What should I do if my short call position is assigned?

You must arrange the delivery of the underlying stock in your securities account. If no delivery instruction is received from you before 12:00 noon on the day we inform you of the assignment, SHKIS will act on your behalf to buy the underlying stock in the market at the current price for settlement.

Last Update: 2016-07-08

What happens if I have an open long position on the expiry day?

If you do not provide an exercise instruction to us before the expiry day, your open long position will either expire or the Options System will automatically generate an exercise instruction in respect of your open long position, which are in-the-money or above the percentage prescribed by SEOCH from time to time.

Last Update: 2016-07-08

How to calculate the amount in 'Account Info'?



Stock Options Trader Pro
Buying Poweri.e. Available balance
= Cash Balance - Initial Margin
NAVi.e. Equity
= Deposit +/- P/L
Margin Call 
I.Margini.e. Initial Margin
M.Margin= I.Margin
M.Level 
Max Margin 
Period 
Cash Balancei.e. Account Balance
= Deposit +/- Premium
Transaction Amount
Lockup Amount
Credit Limit 
Net Opt Value= Current Price x Contract Size
Total Premium= Trade price x Contract size
Client Status 
Ctrl Level 
Mgn Class 
AE 
Example: #1 Cheung Kong 105 Call Option
Price: $1.00 Current Price: $0.50 Last Closing: $0.60
Margin$15,000
Deposit$20,000
Selling the option
NAV$20,000 + $500 = $20,500
P/L($1.00- $0.50) x 1000 = $500
I.Margin$15,000
Cash Balance$20,000 + $1000 = $21,000
Buying the option
NAV$20,000 - $500 = $19,500
P/L($0.50- $1.00) x 1000 = -$500
I.Margin0
Cash Balance$20,000 - $1000 = $19,000

Last Update: 2016-07-08

Futures

If I amend a HK futures order, will the order be re-queued in HKATS?

You can amend an order using any of the three methods:

•  Reduce the quantity

•  Change the price

•  Increase the quantity


The order will not be re-queued if you reduce the quantity only. However, by changing the price or increasing the quantity of an order, you will be cancelling the original order. The amended order will be treated as a new order and sent to HKATS to be re-queued. To avoid re-queuing, it is suggested that you increase the quantity by submitting a new order instead of amending the original order.

Last Update: 2016-07-08

What is the settlement procedure/date for financial futures?

Most settlement methods of HKFE-related products are cash-settled contracts for differences, and the final settlement day is the first business day after the last trading day, which is the day immediately preceding the last business day of the contract month.


The final settlement day for index options is the business day immediately following the expiry day, which is the business day preceding the last business day of the contract month.

Meanwhile, the final settlement day of One-Day Rolling Currency futures contracts is the second FX business day after the day on which open positions are closed. If the day is a bank holiday either in New York or in the respective country, then settlement shall be on the next FX business day which is not a bank holiday in both New York and respective countries.

Last Update: 2016-07-08

How do I close out an open position for a futures contract?

To close out an open position for a futures contract, login to our “Futures Trader Pro” and go to “Position Page”. Click on the contract and “Close-out” button, order details will be filled in automatically (the price will be filled with the best price of the opposite open contract at the moment you click on the button). Verify the order details, and then click on 'Buy' or 'Sell' to confirm the order.

Last Update: 2016-07-08

How do I amend a HK futures order?

After you can go to the 'Order Page', another small window will be displayed when right-clicking on the order, which will allow the user to make changes on it. The order details will pop up where you can amend the order by clicking on the 'Change order' button. You can amend the price or quantity of the order.

Last Update: 2016-07-08

How do I cancel a HK futures order?

You can go to the 'Order Page', another small window will be displayed when right-clicking on the order, which allows the user to cancel on it. The order details will pop up where you can cancel the order by clicking on the 'Delete order' button.

Last Update: 2016-07-08

What can I do if I want to place a HK futures order but do not have access to a computer?

You can call your investment consultant to place your orders.

Last Update: 2016-07-08

What is the maximum price spread for submitting an order via the ' Futures Trader Pro '?

Futures order

Within +/- 8% of the market price

 

Options order

Hang Seng Index Options: +/- 800 points

H-shares Index Options: +/- 500 points

 

Note: the actual price deviation varies

Last Update: 2016-07-08

Mutual Funds

Where can I buy unit trusts?

You can buy unit trusts from:
Fund managers
Many fund managers sell unit trust products directly through their own team of advisors, by phone or by mail.
Retail banks
Offering one-stop shopping convenience for bank clients.
Private banks
Offering more in-depth research and services for high net worth individuals.
Independent financial advisors
Offering full financial advice, usually with a wide product mix to investors.

Last Update: 2016-07-08

How can I buy and sell unit trusts?

Most unit trusts in Hong Kong are traded on a daily basis. Investors can buy and sell by placing their instructions with their advisor through the above channels.

Last Update: 2016-07-08

How do I make money from my unit trust investments?

An investor can make money from unit trusts through:
Capital gains
Appreciation in value of the underlying stock or bond investments.
Dividend income
Fund managers may depend on the objective of the unit trust to distribute income earned by the underlying investments.

Last Update: 2016-07-08

B Shares

How do I place orders?

You should call up your Investment Consultant at EBSHK to place orders. For Shanghai B-shares, you should also inform your Investment Consultant if you require EBSHK to complete the currency conversion on your behalf for settlement.

Last Update: 2016-07-08

US Shares

How soon can I start trading after my U.S. Trader account is opened?

As soon as your account is funded and is cleared, you can start trading.

Last Update: 2016-07-08

Can I trade U.S. stocks with HKD?

Funds in your U.S. trading account will always be converted to USD before trading can begin. We provide currency conversion services and can accept all major currencies. Your trading account must have cleared U.S. funds before a trade can be executed. Ensure the FX conversion checkbox is ticked in your Deposit Instruction Form.

Last Update: 2016-07-08

Can I apply for IPOs in the U.S.?

No.

Last Update: 2016-07-08

How can I place a U.S. shares order?

You can only trade online.

Last Update: 2018-08-06

Can I place an order if I only have HKD in my trading account?

Funds in your account need to be converted to USD before trading can begin. We provide U.S. currency conversion services and can accept all major currencies. Your trading account must have cleared U.S. currency conversion services funds before a trade can be placed. If we receive your currency exchange instruction before 11:00am, your HKD will be converted to USD and remitted to your trading account. Funds may be available in your trading account on the same U.S. business day, but will still be subject to the processing time of the corresponding bank. If you submit your instruction after 11:00am, your instruction will be processed by the next working day.

Last Update: 2016-07-08

How soon does a U.S. share trade settle?

All U.S. trades settle on T+2 (trade day plus three U.S. working days).

Last Update: 2018-08-06

Can I deposit the necessary funds to cover a trade after a U.S. shares order has been placed?

Our online trading account only allows orders to be placed with sufficient cleared funds in your trading account.

Last Update: 2018-08-06

How do I place a U.S. shares order via the internet?

On our trading website, enter '53W' for the Financial Organisation Number, as well as your login ID and password to access trading.

Click on 'Trading' in the top menu.

Enter the stock symbol, order and transaction type, then click on the 'Review Before Sending' button.

Click 'Send Order' to put your order through.

Once executed, the review message will say 'Sent to Approval'. Please check in your intraday order status to confirm that your order has been executed.
For further help please click on 'Remote Help' on your left on the trading website.

Last Update: 2016-07-08

Why can't I access my account?

If you are unable to gain access to your account, please call our Customer Service Hotline on +852 2822 5001 for assistance.  Please note that your account will be automatically locked if you have entered an incorrect password three times.

Last Update: 2016-07-08

How do I amend or cancel a placed U.S. shares order?

Amending or cancelling an order can only be done if the order is under 'Open' status, which occurs under the following conditions: Extended hours trading orders , Limit orders and Stop orders . In these cases, you can amend or cancel the order by clicking 'Order Status' under the 'Trading' menu to view such orders, then click on the 'Open' status to make changes accordingly.

Last Update: 2016-07-08

After sending my U.S. shares order for execution, a review message says 'The following order has been sent for approval'. What does this mean?

By default, all orders will carry that message once executed, due to the fact that every order must be checked for trading rule violations. In most cases, your order will be sent for execution straight away. You can check the status of the order by clicking on 'Order Status' under the 'Trading' menu, where you can confirm that the order has been executed.

Alternatively, under the 'Portfolio' menu, you can click on 'Executions' to check if your order has been executed.

Last Update: 2016-07-08

Can I place a U.S. shares order before the market opens?

Yes, all orders not placed within market hours will be queued for processing as soon as the market opens.

Last Update: 2018-08-06

Does my U.S. shares order expire if my order is not executed after market close?

You can specify whether your order is for the 'Day' or is 'Good Till Cancelled (GTC)' upon order entry. For all unexecuted 'Day' orders, they will expire after that trading session.

Last Update: 2016-07-08

I see my U.S. shares order with the status 'Pending' shown in the 'Order Status' screen. What does this mean?

Orders will show a 'Pending' status when preset rules have been violated, and will be reviewed by our Dealing Desk for approval or rejection. Once approved, the order will go into 'Open' status, waiting for execution at the market.  For details, please contact our Customer Service Hotline on +852 2822 5001.

Last Update: 2016-07-08

What is the minimum / maximum order size for U.S. shares?

During regular market hours, you can trade as little as one share per order, and there is no maximum limit in an order. For orders executed during extended-hours trading please refer to the above.

Last Update: 2016-07-08

Is there a spread range which my limit order has to fall into?

No.

Last Update: 2016-07-08

What are the duration types available through U.S. Trader?

Day order - Any order to buy or sell a security that automatically expires if not executed on the day the order is placed.

GTC order - A Good Till Cancelled (GTC) order is an order to buy or sell a security that is good until the investor decides to cancel it. GTC orders automatically expire after 90 days.

Last Update: 2016-07-08

Is the Stop order available for all securities?

    A Stop order is available for securities listed on all exchanges except the following:

  • OTC Bulletin Board
  • Pinksheets


Some restrictions may apply to new IPOs. For any questions in placing such orders, please call our Customer Service Hotline on +852 2822 5001 for an order entry. Dealer assisted phone trades may incur extra charges for our online trading customers.

Last Update: 2016-07-08

What is a '90-day restriction' and how does it affect day trading?

The Federal Reserve Board recently published a clarification of Regulation T (Section 220.8) regarding permissible transactions while an account is subject to a 90-day restriction. Similarly, the New York Stock Exchange (NYSE) clarified its interpretation of margin day trading, pursuant to NYSE Rule 431.

Regulation T states that an account that has triggered the 90-day restriction must have sufficient funds in the account to purchase securities. If a client whose account is subject to a 90-day restriction sells a fully paid security, in order to pay for the purchase of another security, the purchase of the security must be cancelled from that client's account. Under the interpretation to Regulation T, the purchase must be cancelled because the proceeds of the sale would not be available to the client until the settlement date. Thus the requirement that funds be in the account must be satisfied on a trade date basis.

When a customer has used unsettled funds (sale proceeds that have not yet settled) to purchase shares in a cash account and subsequently sells those shares prior to the settlement of the initial sale, an account will become restricted if three such occurrences happen within a 12-month period. Therefore customers who would like to perform day trading must ensure they have sufficient cleared funds in the account and avoid stretching their buying budget to funds that have yet to be settled.

To illustrate a scenario that would result in a such a violation because of the use of unsettled funds, refer to the example below:

On Monday, April 11, a client sells 500 shares of ABC stock that were fully paid for in the cash account. On Tuesday, April 12, the same client (and account) purchases 100 shares of XYZ stock and sells the same 100 shares of XYZ stock on Wednesday, April 13. If the account has two more similar occurrences within a 12-month period, the account will be restricted for 90 days to funds-on-hand trading.

Therefore customers who would like to perform day trading must ensure they have sufficient cleared funds in the account and avoid stretching their buying budget to funds that have yet to be settled.

Last Update: 2016-07-08

Can EBSHK Exchange help me sell the U.S. restricted stock?

We can offer such services, but whether the stock can be sold is subject to legal advice and certain restrictions. For details, please contact our Customer Service Hotline on +852 2822 5001.

Last Update: 2016-07-08

Bullion

How can I submit a trade on bullion?

You can place an order either by phone or in person.

Last Update: 2016-07-08

When can I submit bullion orders?

During the trading hours of the bullion markets. For further enquiries, please call our Customer Service Hotline at +852 2822 5001.

Last Update: 2016-07-08

What is the bullion settlement procedure date?

The value date of Spot Bullion is T+2. It means that you can take physical delivery of the executed contract on the third day. Because no physical delivery is required, the related position will be deferred and interest will be charged or paid, whichever is applicable until the position is closed. However, we will demand customers from time to time satisfy any margin calls without taking into consideration the value date.

Last Update: 2016-07-08

How do I calculate the profit / loss in trading bullion?

[(Selling price - Buying price) x Contract size + Interest] x Number of contracts = P / L

Commission is not included in above demonstration.

Last Update: 2016-07-08

An example of trading bullion

Demonstration 1

LLG Transaction
Sell 2 lots LLG to square original buying position on the same day
Buying Price US$ 400.00oz
Selling Price US$ 405.00oz
Calculation
[(405.00 - 400.00) x 100 + 0) x 2]
=US$1,000

Last Update: 2016-07-08

Foreign Exchange

What is the FX trade size?

You are free to trade in any particular currency amount that suits your trading or hedging needs.

Last Update: 2016-07-08

What is the minimum trade size in FX Trader?

5,000 of the left hand side of the currency pair. For example, the minimum trade size for GBPUSD is 5,000 GBP.

Last Update: 2016-07-08

What is the cut-off time for an FX trading day?

From Monday to Friday 17:00 New York Time.

Last Update: 2016-07-08

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