The following are the currency pairs provided by hte company. Each lot of standard contract is 100,000 amounts of base currency. The minimum order is 0.1-lot that contract is 10,000 amounts of base currency. The Maximum contract amount is 30-lots for each transaction.
 

In general, client can set an expiration time for the order. If it is not set by client, the order will remain pending by default until it is executed by the market or cancelled by client (Good Till Cancel).

Market Orders
Place an order to buy or sell at the prevailing market price. It has no price protection which may lead to the executed price at positive or negative slippage for the client.

Buy Limit Orders / Sell Limit Orders
Allow client to place an order at a specified price to buy below, or sell above the prevailing market price but execution will not be guaranteed because of the market fluctuation. Orders will be executed when the specified price is reached in the market. The executed price of the Buy / Sell limit orders may be favorable for client.

Buy Stop Orders / Sell Stop Orders
Contrary to limit orders, stop orders allow client to set a specified price to buy above, or sell below the prevailing market price. Stop orders will be triggered for execution when the specified price is reached in the market. Once the stop order is triggered, it will be filled at the best price available. It is not guaranteed for stop orders to be filled at the specified price. The executed price may be higher or lower than the price specified by the stop order. In cases where the market gaps up/down or becomes illiquid, including but not limited to during market opening, economic data release and political events, client is exposed to the risk that the executed price may be significantly worse than the specified price.

Take Profit Orders
Allow client to place a limit order on an open position. The open position will be closed at the executed price of the limit order when the specified price is reached in the market.

Stop Loss Orders
Allow client to place a stop order on an open position. When the specified price is reached in the market, such stop order will be triggered and the open position will be closed at the best price available then.

Open position rollover interest table

Rollover interest will be charged at 5:00 a.m. Hong Kong time (summer session) or 6:00a.m. Hong Kong time (winter session) on all carried over positions.

The value date of FX Spot is T+2 normally, and most of the international banks are closed during weekend. Therefore, the rollover interest of weekend will be calculated on Wednesday and it will be 3 days of rollover interest. Meanwhile, there are no rollover interest calculation on every holiday, the value date will postpone 1 day and the rollover interest will be calculated when the value date of traded currency(ies) involve the holiday of the country(ies).

Example 1: General situation

Example 2: US Holiday on 8, Feb

Example 3: Non-US Holiday on 8, Feb

Margin requirements and details
The default leverage rate for Guotai Junan FX trading account is set at 20:1, unless client has special request. Please be reminded that the maximum leverage on your Guotai Junan FX trading account is 20:1, which is maximum leverage according to the SFC.

 
Initial Margin
Initial Margin means the margin required to open a position, clients should maintain no less than 5% of the gross principal value of the contract(s) as initial margin in his/her FX account before open a position.

Maintenance Margin
If the equity of the trading account stands at or falls below 3% of the gross principal value of the contract(s), client will receive a margin call notice by electronic means (if applicable). If client are unable to fulfill the maintenance margin requirement 2 hours before the market close on Saturday (i.e. 2:00 am Hong Kong time (Summer session); 3:00 am Hong Kong time (winter session)), the Guotai Junan FX will liquidate part or all the open position(s) until the trading account meets the maintenance margin requirement before the market close on Saturday, without prior notice to the client.

 
Force Liquidation Margin
If the equity of the trading account stands at or falls below 1.5% of the gross principal value of the contract(s), open positions will be liquidated, without prior notice or warning, in descending order of floating loss amount until the trading account stays over 3% of the gross principal value of the contract(s).

The margin call will be issued one or more than one channels by Trading platform alert / Trading platform message / Email / SMS. After the margin call has been issued, client can only close outstanding positions, but not open any new position, unless the close-out of all or parts of the open positions results in sufficient cash equity amount.

Equity must be topped up to the maintenance margin level before the specified deadline; otherwise, some or all positions will be liquidated.
 
If the equity of the trading account stands between 1.5% and 3% of the gross principal value of the contract(s), and clients are unable to fulfill the maintenance margin requirement 2 hours before the market close on Saturday (i.e. before 2:00 a.m. Hong Kong time (summer session); before 3:00 a.m. Hong Kong time (winter session)), the Company will liquidate client’s open position(s) in descending order of floating loss amount, until the trading account meets the maintenance margin requirement before the market close on Saturday, without further notice to clients.
 
If the equity of the trading account falls at or below the force liquidation level, the trading system does not guarantee to liquidate the open positions while the residual equity balance is same as expected by client. The clients account balance in the extreme market situation may fall into a debit balance. Clients will be charged an annual interest rate of 8.00% over the Hong Kong best lending rate (Prime Rate) on your debit balances in your FX account calculated on a daily basis.

A. Trading Platform Information

B. Trading Hours
Normal trading hours starts from Monday 6:15 a.m. Hong Kong time (summer session) or 7:15 a.m. Hong Kong time (winter session) and closes on Saturday at 4:00 a.m. Hong Kong time (summer session) or 5:00 a.m. (winter session).

C. Trading Limit
When you open a FX account with us, we will set a trading limit for you. If you maintain open positions exceeding the trading limit, we may liquidate all/or parts of your open positions to keep the open positions below the trading limit, without giving prior notices or warnings.

D. Margin Requirement
You should maintain no less than 5% and 3% of the gross principal value of the contract(s) offered by Guotai Junan FX Limited (the “Company”) as initial margin and maintenance margin respectively. The Company may change the margin requirement and interest rate at any time at its absolute discretion. This requirement once established will apply to existing positions as well as to the new positions in your leveraged foreign exchange trading account.

E. Profit or Loss
Direct Quotation
For Example:
Client open position is SELL 1-lot of EUR/USD at 1.10832 with contract amount EUR 100,000
Client close position is BUY 1-lot of EUR/USD at 1.11856 with contract amount EUR 100,000
100,000 x (1.10832–1.11856) = -USD 1,024.00

Indirect Quotation
For Example:
Client open position is BUY 1-lot of USD/JPY at 107.502 with contract amount USD 100,000
Client close position is SELL 1-lot of USD/JPY at 108.802 with contract amount USD 100,000
100,000 x (108.803–107.502) / 108.803 = USD 1,195.74

Caution: Except the closing price, both rollover interest and commission charges will also affect the profit and loss.

F. Slippage
Slippage means the price difference between the executed price and the client order price. Slippage can be positive or negative. It often occurs with market orders or stop orders during a period when the market volatility is high, the market trade volume is low, or the market bid-offer spread is wide. The Company does not retain any positive or negative slippage, and all such slippages are passed on to clients.

G. Commission
USD50.00 (negotiable) handling fee per $100,000 base currency bought or sold through online trading. An additional of USD10.00 handling fee per $100,000 base currency for bought or sold through phone dealing services.

H. Reset Password
Password is formed by 8 digits including 1 number, 1 uppercase alphabet and 1 lowercase alphabet. Every new password is valid for 90 days, client will get the password changing notice before expiration and the past 3 passwords cannot be reused.

I. Phone Dealing
Dealers of the Company only act as your agents in placing orders. Our dealers are unable to quote executable price. After you placed order requests, the dealers will inform you about the reference prices, status of the orders and the executed prices, while the price will be subject to market fluctuation and may be different from the reference price quoted to you previously.

J. Flow on Phone Dealing
When you make a phone dealing call, the dealer will ask your personal information for verification.

Here is an example of the dealing conversation:

C = Client
D = Guotai Junan FX Dealer
D:    May I have your trading account number, please?
C:    My trading account number is 888888
D:    May I have your date of birth, please?
C:    My date of birth is Jan 1, 1950
D:    May I have your name on this trading account, please?
C:    Chan Tai Man
C:    Please quote AUD/USD
D:    The reference price for AUD/USD is 0.8680/0.8683
C:    I would like to long 1-lot of AUD/USD at market
D:    1-lot of AUD/USD filled at 0.8683

Note: The information above is for reference only. If you have any enquiries, please contact our customer service at (852) 2509 9788 or fx@gtjas.com.hk.

1.General
The following risk disclosure statements cannot disclose all the risks and other significant aspects involved.  The intention is to inform investors that the risk of loss may be substantial in certain circumstances. In light of the risks, the investors should invest or trade only if it understands the nature of the contracts (and contractual relationships) it is entering into and the extent of its exposure to risk. Investors should carefully consider whether an FX transaction or a Bullion transaction, as the case may be (collectively, the “Transaction”) is suitable for it in light of its experience, financial position, resources, objectives and other circumstances. Investors should undertake its own research and study before it invests or trades. Investors are advised to seek independent financial and professional advice before it invests or trades. Investors should seek independent professional advice if it is uncertain of or has not understood any aspect of these risk disclosure statements or the nature and risks involved in investment or trading.
(i)    The Transactions are "non-transferable" and it may be impossible for investors to close out or liquidate them.
(ii)   Guotai Junan FX Limited (“GTJAFX”) may from time to time provide investors with information on investments, products or markets such as research, reports, market trends, investment analysis, commentary or internal ratings on the performance of selected companies, assets, interest rates, exchange rates and/or indices. Investors understand and agree that such information is for reference purposes only when it is not accompanied by a solicitation or recommendation and it should not be construed as any endorsement or recommendation of the investments, products or markets.
(iii)  Investors confirm to GTJAFX that it has sufficient knowledge and experience to be able to evaluate the merits and risks of entering into each Transaction, and investors are able to make, have made or will make its own assessments and decisions on the merits and risks of the Transactions that it enters into and products it will invest in.
(iv)  Rates may fluctuate rapidly.  No indication or quotation of any rate binds GTJAFX until investors have "accepted" it and GTJAFX has thereafter re-confirmed it.
(v)   Past performance is not indicative of future performance. The offering documents or information provided by GTJAFX and/or its affiliates have not been reviewed by the Securities and Futures Commission of Hong Kong (“SFC”) and/or other relevant regulatory authorities and investors are advised to exercise caution in relation to the offer.

2.Commission and Other Charges
Before investors begin to trade, it should obtain a clear explanation of all commission, fees and other charges for which it will be liable. These charges will affect its net profit (if any) or increase its loss.

3.Currency Risks
The profit or loss in Transactions in foreign currency-denominated contracts (whether they are traded in investors' own or another jurisdiction) will be affected by fluctuations in currency rates where there is a need to convert from the Currency denomination of the contract to another Currency.

4.Risks Relating to Historic Rate Rollover 
Historic rate rollover may be used to conceal losses or to perpetuate fraud as losses are not usually realised unless a transaction is settled or closed-out by GTJAFX.

5.Risks Relating to Exchange Rate Volatility
Substantial losses may be sustained on the contract, trade, product or financial investment if the market conditions move against investors' position.  Market movements may have an impact on the extent of profit/loss investors would be exposed to when there is an upward or downward movement in the relevant rates, and the extent of loss if investors have to liquidate a position should market conditions move against such investors. Investors' position may be liquidated at a loss and investors will also be liable for any resulting deficit in his/its account with GTJAFX.

6.Liquidity Risks
It may be difficult or impossible to liquidate or trade in a Transaction, to assess a fair price or assess risk exposure.  This can happen, for example, where the market for a transaction is illiquid or where there is a failure in electronic or telecommunications systems, and where there is the occurrence of an event commonly known as "force majeure".  Placing contingent orders, such as "stop-loss" or "stop-limit" orders, will not necessarily limit investors' losses to the intended amounts, as it may be impossible to execute such orders under certain market conditions.

7.Liquidity Risk:  Non-Deliverable Forwards
The underlying currency of a NDF Transaction may not have a ready market.  Consequently, the NDF Transaction may be very illiquid and, in such event, investors may sustain substantial losses as the bid/offer spreads may be very wide if the market moves against such investors' position.

8. Off-exchange Transactions
In some jurisdictions, there may be restricted circumstances in which firms are permitted to effect off-exchange Transactions. Off-exchange Transactions have higher counterparty default risk than the exchange-traded Transactions. The firm with which investors deal may be acting as investors' counterparty to the off-exchange Transaction. It may be difficult or impossible to liquidate an existing position, to assess the value, to determine a fair price or to assess the exposure to risk. For these reasons, these off-exchange Transactions may involve increased risks. Off-exchange Transactions may be less regulated or subject to a separate regulatory regime. Before investors undertake such off-exchange Transactions, it should familiarise itself with applicable rules and attendant risks.

9.Trading Facilities
Electronic trading facilities are supported by computer-based component systems for the order-routing, execution, matching, registration or clearing of trades. As with all facilities and systems, they are vulnerable to temporary disruption or failure. Investors' ability to recover certain losses may be subject to limits on liability imposed by the system provider, the market, the clearing house and/or participant firms. Such limits may vary: Investors should ask GTJAFX for details in this respect.

10.Risk of Trading in the Transactions
Conducting FX and Bullion Trading on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against them as well as for them. Before deciding to under the Transactions, investors should carefully consider their investment objectives, level of experience, and risk appetite. The possibility exists that investors could sustain a loss of some or all of their initial investment and therefore they should not invest money that they cannot afford to lose. Investors should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if they have any doubts. Past returns are not indicative to future results.

The risk of loss in FX and Bullion trading can be substantial. Investors acknowledge and agree that he/it may sustain losses in excess of his/its initial margin funds.  Placing contingent orders, such as "stop-loss" or "stop-limit" orders, will not necessarily limit losses to the intended amounts. Market conditions may make it impossible to execute such orders. Investors acknowledge and agree that he/it may be called upon at short notice to deposit additional margin funds. If the required funds are not provided within the prescribed time, his/its position may be liquidated. Investors will remain liable for any resulting deficit in his/its account. Investors should therefore carefully consider whether such trading is suitable in light of his/its own financial position and investment objectives.

11.Risk of Margin Trading
The risk of loss in financing a transaction by deposit of collateral is significant. Investors acknowledge and agree that he/it may sustain losses in excess of his/its cash and any other assets deposited as collateral with the licensed or registered person. Market conditions may make it impossible to execute contingent orders, such as "stop-loss" or "stop-limit" orders. Investors may be called upon at short notice to make additional margin deposits or interest payments. If the required margin deposits or interest payments are not made within the prescribed time, investors' collateral may be liquidated without his/its consent.  Moreover, investors will remain liable for any resulting deficit in his/its account and interest charged on his/its account. Investors should therefore carefully consider whether such a financing arrangement is suitable in light of his/its own financial position and investment objectives.

12.Risk of Electronic Trading
Trading on an electronic trading system may differ from trading on other electronic trading systems, and investors will be exposed to risks associated with the system and/or the internet if investors undertake transactions on an electronic trading system and/or the internet. Access to the internet or other electronic devices may be limited or unavailable during periods of peak demand, market volatility, systems upgrades or maintenance or for other reasons. Transactions conducted through the internet or other electronic devices may be subject to interruption, transmission blackout, and delayed transmission due to unpredictable traffic congestion and other reasons beyond GTJAFX's control. The internet is, due to technical limitations, an inherently unreliable medium of communication. As a result of such unreliability and/or failures of hardware or software associated with electronic trading systems, there may be delays in the transmission and receipt of Instructions and other information and this may result in delays in the execution of Instructions, failure to execute orders according to Instructions (including execution at prices different from those prevailing prices at the time the Instructions were given) and/or Instructions not being executed at all. Moreover, communications and personal data may be accessed by unauthorised third party; and there are risks of misunderstanding or errors in any communication and such risks shall be absolutely borne by investors. Investors acknowledge and agree that it shall not usually be possible to cancel an Instruction after it has been given. 

13.Risks of Assets Received or Held Outside Hong Kong
Investors acknowledge and agree that the Investors' assets received or held by the licensed or registered person outside Hong Kong are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from the SFO and the rules made thereunder. Consequently, investors' assets may not enjoy the same protection as that conferred on the investors' assets received or held in Hong Kong.

14.Risk of Providing Authority to Hold Mail or to Direct Mail to Third Parties
If investors provide GTJAFX with an authority to hold mail or to direct mail to third parties, it is important for investors to promptly collect in person all contract notes and statements of investors' Account and review them in detail to ensure that any anomalies or mistakes can be detected in a timely fashion.

15.Instructions Outside Hong Kong
If investors give any Instruction to GTJAFX outside Hong Kong, investors agree to ensure and represent that such Instruction will have been given in compliance with any applicable law of the relevant jurisdiction from which investors' Instruction is given, and investors further agree that  investors shall, when in doubt, consult legal advisers and other professionals of the relevant jurisdiction. Investors accept that there may be taxes or charges payable to relevant authorities in respect to any Instruction given outside Hong Kong, and investors agree to pay such taxes or charges as applicable.

16. Credit Risk of GTJAFX
If GTJAFX becomes insolvent or defaults on its obligations, investors may only claim as an unsecured creditor of GTJAFX.

17.Credit Risk of the Custodian Bank
All investors’ amounts provided by investors will be deposited into the custody account opened by GTJAFX as trustee with the custodian bank. Investors are exposed to the credit risk of the custodian bank if it becomes insolvent and/or it is unable to repay its debt in full or otherwise. In the event that a custodian bank is unable to repay the custody amount to GTJAFX in full, GTJAFX shall not be liable to make any shortfall to investors and shall not be liable for any loss, costs and expenses of investors. Investors may only recover from the amount (if any) actually received by GTJAFX from the custodian bank on a pro rata basis with all other beneficiary investors and such amount recovered may be substantially less than what investors have provided to GTJAFX in accordance with the agreement entered into with GTJAFX and may be zero.

18.Limited Maximum Potential Gain
The maximum potential gain is capped at the pre-determined exchange rate on the FX products.

19.Early Termination Risk
Early termination may not be permitted. Investor may suffer loss as a result of any early termination requested by the investor.

20.Forwards
Transactions in forwards involve the obligation to make, or to take, delivery of the underlying asset of the contract at a future date, or in some cases to settle your position in cash without delivery of the underlying asset.

The seller of a forward contract must deliver the agreed price which can be considerably below the then market price in the case of rising prices. The purchaser of a forward contract on the other hand must accept delivery at the agreed price in the case of falling prices. In both cases, the risk lies in the difference between the agreed price and the market price. This risk is not determinable in advance and can exceed any collateral provided.

21.Derivatives
(i)   A derivative is a financial instrument, the value of which is derived from an underlying asset's value. Rather than trade or exchange the asset itself, an agreement is entered into to exchange money, assets or some other value at some future date based on the underlying asset. A premium may also be payable to acquire the derivative instrument.
(ii)  You should not deal in derivative products unless you understand the nature of the contract you are entering into and the extent of your exposure to risk. You should also be satisfied that the contract is suitable for you in the light of your circumstances and financial position.
(iii)   An investor in derivatives often assumes a high level of risk, even where the intention behind entering to a derivative is to reduce risk by way of hedging, and therefore investments in derivatives should be made with caution, especially for less experienced investors or investors with a limited amount of capital to invest.
(iv)   If a derivative transaction is particularly large or if the relevant market is illiquid (as may be the case with many privately negotiated off-exchange derivatives), it may not be possible to initiate a transaction or liquidate a position at an advantageous price.
(v)   Off-exchange derivatives may take the form of unlisted transferable securities or bilateral "over-the-counter" contracts ("OTC"). Although these forms of derivatives may be traded differently, both arrangements may be subject to credit risk of the issuer (if transferable securities) or the counterparty (if OTCs) and, like any contract, are subject also to the particular terms of the contract (whether a one-off transferable security or OTC contract, or a master agreement). In particular, with an OTC contract, the counterparty may not be bound to "close out" or liquidate this position, and so it may not be possible to terminate a loss-making contract. Off-exchange derivatives are individually negotiated. As the terms of the transactions are not standardised and no centralised pricing source exists (as exists for exchange traded instruments), the transactions may be difficult to value. Different pricing formulas and financial assumptions may yield different values, and different financial institutions may quote different prices for the same transaction.
(vi)    Derivatives can be used for speculative purposes or as hedges to manage other investment or economic risks. In all cases the suitability of the transaction for the particular investor should be very carefully considered.
(vii)   You are therefore advised to ask about the terms and conditions of the specific derivatives and associated obligations (e.g. the circumstances under which you may become obligated to make or take delivery of an underlying asset and, in respect of options, expiration dates and restrictions on the time for exercise). Under certain circumstances the specifications of outstanding contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying asset. Normal pricing relationships between the underlying asset and the derivative may not exist in all cases. This can occur when, for example, the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may make it difficult to assess "fair" value.

22.Concentration Risk
The value of a Transaction is highly volatile and may be affected by the market, currency, economic, and political conditions of the country to which the currency(ies) of the Transaction relate. This may result in an increased amount of volatility, liquidity, price and foreign exchange risk associated with investments in respect of the currency of one or more countries. If there are any economic and financial difficulties in such country, or if the measures taken by the relevant government or authorities to solve such economic and financial difficulties did not work, this may have significant adverse consequences on your investments in the Transaction and thus adversely affect the overall value of the Transaction. If you have invested all or a substantial amount of your assets in Transactions that are exposed to a small number of currencies, your investment return may be subject to a high concentration risk and you may lose some or all of your investment in the Transactions if the market goes against your view.

23.Settlement Risk
A failure in settling a Transaction may arise from counterparty default, operational problems, market liquidity constraints and other factors and, accordingly, parties to settlement of such Transaction normally assume full and unsecured risk with regard to counterparty exposure. If there is a failure to settle any Transaction, this may have a material adverse impact on the value of such Transaction and you may lose some or all of your investment in such Transaction.

24.Not a Time Deposit
A Transaction is not equivalent to time deposit and does not represent any deposit of money. It is not protected under the Deposit Protection Scheme in Hong Kong.

25.Additional Risks Associated with Bullion Transactions
Bullion Transactions linked to the price of gold or silver may be subject to certain specific risks.
Gold and silver are precious metals. Consequently, Bullion Transactions linked to the price of such commodities may be subject to a number of additional factors specific to precious metals that might cause price volatility. These may include, among others:
•          disruptions in the supply chain, from mining to storage to smelting or refining;
•          adjustments to inventory;
•          variations in production costs, including storage, labor and energy costs;
•          costs associated with regulatory compliance, including environmental regulations;
•          changes in industrial, government and consumer demand, both in individual consuming nations and internationally;
•          precious metal leasing rates;
•          currency exchange rates;
•          level of economic growth and inflation; and
•          degree to which consumers, governments and corporate and financial institutions hold physical gold as a safe haven asset (hoarding) which may be caused by a banking crisis/recovery, a rapid change in the value of other assets (both financial and physical) or changes in the level of geopolitical tension.

These factors interrelate in complex ways, and the effect of one factor on the market value of Bullion Transactions linked to the price of gold or silver may offset or enhance the effect of another factor.

26.Accuracy of Information
The content on this Web site is subject to change at any time without notice, and is provided for the sole purpose of assisting investors to make independent investment decisions. The contents of this document have not been reviewed by the SFC or any other regulatory authority in Hong Kong. GTJAFX has taken reasonable measures to ensure the accuracy of the information on the Web site. However, GTJAFX does not guarantee its accuracy, reliability or completeness, and will not accept liability for any loss or damage that may arise directly or indirectly from the content or your inability to access the Web site, for any delay in or failure of the transmission or the receipt of any instruction or notifications sent through this Web site.