Longbridge Integrated A/C

Longbridge Integrated A/C is a trading account that gives you the flexibility to manage your portfolio and able you to trade with leverage when you need it. You can increase your investment power through margin financing by placing selected listed securities in your account as collateral.

The credit limit of your account will be automatically assessed according to your deposit or stock transfer. You may also apply for adjustment by logging in to the Longbridge App - Portfolio - Financing Status, or contact your account manager.

Margin

• Initial Margin (IM): The required margin to open a new position.
• Maintenance Margin (MM): The required margin to hold the position.
• Force-selling Margin (FM): The minimum margin requirement that prevents immediate force-selling.
• IM/MM/FM Requirement = Sum (Quantity x Market Price of Individual Investment Product x relevant Margin Factor)

Margin Requirements

Equity Balance = Cash Balance (ledger) + Total Market Value of Investment Portfolio

Available Cash

Available Cash (including financing) = Equity Balance - IM Requirement - Blocked Cash

Maximum Available to Purchase = Available Cash / Initial Margin (IM)

The credit balance should be less than the credit limit.

For example:

A client deposits $10,000 in cash and purchases shares with an IM ratio of 30%, and the account’s credit limit is $20,000.

Maximum purchasing power = $10,000 / 30% = $33,333

Since the client’s account has a credit limit of $20,000, the client can actually purchase up to $30,000 of shares. ($10,000 for cash and $20,000 for financing)

Margin Call (MC)

Margin call will be higher than the difference between maintenance margin and equity assets.

Margin Call is triggered when there is a margin deficit. The client is required to satisfy the margin call within 3 market days including the date of notice.

Example - Case of margin call

A client deposits $10,000 in cash and $5,000 worth of A shares (IM: 30%, MM: 25%) and $25,000 of B shares (IM: 50%, MM:45%). Suppose the market value of stock B falls to $19,500.

After the client buys the stock and the market value of stock B falls, the client's position is as follows.

The client needs to ensure that the equity assets in their account reach the margin requirement on or before the specified date.

If the client chooses to sell securities, the market value to be sold is no more than the difference between the initial margin and equity assets/initial margin ratio (IM Ratio)

When the equity balance is lower than the force-selling margin, the client needs to top up the margin deficit amount, otherwise, the position may be liquidated immediately.

The actual margin call amount may be higher depending quality of collateral and the company's policy.

Excess Funds Management

You may wish to opt-in for the Cash Plus service, which is a financial product that manages your excess funds and was launched by Longbridge Securities (Hong Kong) Co., Ltd. It provides users with cash value-added services, and not only meets the needs of users to purchase shares at any time but also creates earnings on their surplus funds. By opting in, your excess HKD and USD funds will be invested on a discretionary basis in Money Market Funds.

Please refer to the section on Cash Plus in Longbridge App for more information.

Settlement of Trades

Longbridge Integrated A/C carries out settlements in the traded currency.

• Settlement of Purchase Contracts: Purchase contracts will be settled on the contract due date.
• Settlement of Sale Contracts: Settlement of sale contracts will be carried out upon fulfillment of delivery obligations.

Online Transaction Records and Account Statement

A detailed monthly statement of account will be provided as long as there are transactions in that month.

Account Transfer

Please refer to the withdrawal and deposit guidelines in the App for details.