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FAQs

Trading Questions

Do we accept US clients?
No.
How does SHK Forex provide price quotes?
Real-time streaming quotes are provided by the largest liquidity providers in the forex market. Quotes are updated in real-time as the market changes.
What leverage does SHK Forex offer?
We offer maximum 1:20 leveraged trading.
What is the minimum account opening amount?
US$5,000 or its equivalent.
What is the settlement currency?
US Dollar.
What are the trading hours?
Monday 5am (HKT) to Saturday 5am (HKT).
What are SHK Forex's fees and commissions?
None.
Under what circumstances might my positions be closed out?

You will receive a margin call when your open position falls below 3% of the gross principal value of the contract. If you do not return your portfolio to the required margin level – 3% of the contract value – SHK Forex, without further notice, will auto liquidate your position if the margin falls to 1%.

E.g.: You sell 100,000 EUR at the rate 1.3000, 1 pips = USD10

5% initial margin = USD130,000 x 5% = USD6,500

3% margin call = USD130,000 x 3% = USD3,900, that means when your balance drops below to USD3,900, you will receive a margin call by email and by phone. At that time, the price has gone from 1.3000 to 1.3260.

USD6,500-USD3,900 = USD2,600
USD2,600/ USD10 = 260pips
1.3000 + 0.0260 = 1.3260

We will request you to deposit money into your trading account. Otherwise, once your margin level drops to 1%, we will liquidate your position.

1% close out position = USD130,000 x 1% = USD1300, that means when your balance drops below to USD1300, we will close out your position automatically. At that time, the price has gone from 1.3000 to 1.3520

USD6500 – USD1300 = USD5200
USD5200 / USD10 = 520 pips
1.3000 + 0.0520 = 1.3520

The above examples are for illustrative purposes only. SHK Forex expressly reserves its full range of rights and powers under its Client Agreement and Schedules to close out positions. For more details, please refer to the latest version of its Client Agreement and Schedules.

Will I receive a margin call?
Yes, you will receive a margin call when appropriate, via email.
Why are my orders being rejected even though I have sufficient equity, buying power and margin?
You should check to see whether you have inputted too many orders into the system. Our system is designed to protect you from potential losses from unusual market movements. It holds your buying power / margin once you have input an order (regardless of whether the order has been filled or not) in case multiple orders exceed your margin requirement.
How can I manage risk when trading currencies?
The short answer is 'limit orders' and 'stop loss orders'. A limit order places restrictions on the maximum price to be paid or the minimum price to be received. A stop loss order sets a particular position to be automatically liquidated at a predetermined price. Both limit potential losses. However, you should be in mind that placing contingent orders, such as "stop-loss" order will not necessarily avoid loss. Market conditions may make it impossible to execute such orders.

Platform Questions

What kind of orders can I use?
One-cancel-the-other, Stop Order, Limit Order
Will I get re-quote?
No. SHK Forex aims to help you to connect to the FX world effectively and fairly. We don't offer re-quote even the market is volatile.

General Questions

How fair is the forex market?
The forex market was, originally, an interbank market but has now become arguably "the fairest market on earth" due to its sheer size, global reach and number of participants. No single player, not even a central bank of a particular country, can effectively control the market direction of a currency for a sustained period.
Where is the central location of the forex market?
The forex market is not controlled by a centralised exchange. It is an Over the Counter (OTC) market as transactions are made via the internet from many different locations 24 hours a day, 5 days a week.
Who are the participants in the forex market?
The forex market was, in the past, dominated by banks. However, the percentage of other market participants is rapidly growing due to the popularity and availability afforded by the internet, and now includes many corporations, dealers, traders and speculators.
When does the forex market open for trading?
The forex market begins trading each day in New Zealand, and moves around the globe, first to Tokyo, then London and New York. Unlike other financial markets, investors can respond to economic, social and political events at the time they occur – day or night. The market is open throughout the working week.
What are the most commonly traded currencies?
Those countries with a significant share of the global economy, stable governments, respected central banks, and low inflation. Over 85% of all daily transactions involve trading in the US dollar, Japanese yen, euro, British pound, Swiss franc, Canadian dollar and Australian dollar.
Why do currency prices change?
Currency prices (exchange rates) can be affected by any number of economic and political conditions or factors including interest rates, inflation and political stability. To make things worse, governments sometimes try to influence the value of their currencies. Central bank intervention of this kind, and the response of investors and speculators, can result in high volatility. However, the size and volume of the forex market makes it unlikely that any country or other entity can control influence the market for any sustained period length of time.
What is Common Reporting System (“CRS”)?
The CRS was developed by Organization of Economic Cooperation and Development (“OECD”), where financial institutions in participating jurisdictions are required to review and collect information that will enable them to identify tax residency of financial account holders and to provide relevant information to the local tax administration authorities on an annual basis. The Hong Kong government gazetted the Inland Revenue (Amendment) (No. 3) Ordinance 2016 on 30 June 2016 and CRS will be effective on 1 January 2017 in Hong Kong.

For more information, please refer to the below link which contained pamphlets issued by the Inland Revenue Department of Hong Kong.
http://www.ird.gov.hk/eng/tax/aeoi/pam.htm

Trading Platform User Guide

Note: Only Cantonese version is available.