Help - Currency Linked Investments

Service Hour
	Monday - Friday	Saturday	Sunday and Public Holiday
Open Contract	09:00-19:00	--	--
Squaring Contract	09:00-19:00	--	--
Contract Enquiry	24 hours	24 hours	24 hours
Interest and Exchange Rates Enquiry	24 hours	24 hours	24 hours

Back to Top

Input the Strike Price

The default Strike Price is set at about the average of the spot bid rate and spot ask rate. You may also set the intended Strike Price, which must be out of the money and subject to Bank's acceptance. The adjustment must be within 10% of the Spot Price under any circumstance.

You can choose the Investment Currency and Linked Currency among HKD, CNY, USD, AUD, CAD, EUR, GBP, JPY and NZD. However, the currency pair of Investment Currency and Linked Currency should be one of the currency pairs provided by the Bank.

If the currency pair is quoted as "CCY1/CCY2":

Quote Method	Acceptable range of Strike Price
If Investment Currency is CCY1 (so the currency pair is quoted as "Investment CCY/Linked CCY")	The inputted Strike Price is subject to Bank's acceptance and must not be higher than 110% of Spot Price under any circumstances.
If Investment Currency is CCY2 (so the currency pair is quoted as "Linked CCY / Investment CCY")	The inputted Strike Price is subject to Bank's acceptance and must not be lower than 90% of Spot Price under any circumstances.

Fees
- There is no service charge for placing Dual Currency Investment, as all fees and charges incurred by the bank are already inherently contained in and subsumed into the calculation of the interest rate and other variables.

Interest % Invested in Option
- You may invest half or all of the interest to buy a call option or a put option of a Linked Currency from the Bank.

Input the Strike Price
- You may set the intended Strike Price and the adjustment must be within the range of 10% of the Spot Price.*
  
  * The nominal amount of option contract may vary depending on the intended Strike Price.

Option Type
- You can choose call option or put option when placing an Option Linked Investment.
  - If you anticipate the Linked Currency to rise, you may buy a call option and get profits if your anticipation is correct. *
  - If you anticipate the Linked Currency to fall, you may buy a put option and get profits if your anticipation is correct. *
  * The interest amount invested in option contract must be taken into account when you compute the actual return.

Fees
- There is no service charge for placing Option Linked Investments, as all fees and charges incurred by the bank are already inherently contained in and subsumed into the calculation of the interest rate and other variables.

You can choose to square a particular contract by clicking the corresponding "Square" button. The system will show the information of "Option Premium", "Net Settlement Amount at Maturity" and "Settlement Account Credited". Please confirm the transaction after checking the details and record the "Squaring Contract Number" for future enquiry.

You can enquire contract details by choosing specific Option Account and "Maturity Date".
To enquire the details of the contract, please click the hyperlink of the Contract Number. The details of contract may vary depending on the Product Type.

Dual Currency Investment
- You may choose to input "Strike Price" and "Premium Interest Rate(%)". After clicking "Calculate", the System will calculate "Net Settlement Amount" based on your input data.
- You may also leave "Strike Price" and "Premium Interest Rate(%)" blank, then click "Use Reference Rate". The system will use the reference Strike Price and premium interest rate to calculate the "Net Settlement Amount".

Option Linked Investment
- You may choose to input the "Strike Price", "Interest Rate (%)" and "Contract Amount". After clicking "Calculate", the System will calculate "Net Settlement Amount" based on your input data.
- You may also leave the "Strike Price", "Interest Rate (%)" and "Contract Amount" blank, then click "Use Reference Rate". The system will use the reference Strike Price and interest rate to calculate the "Net Settlement Amount".

The Bank classifies investment products into 5 levels (1 = Low Risk, 2 = Low to Medium Risk, 3 = Medium Risk, 4 = Medium to High Risk, 5 = High Risk) based on the Bank’s internal assessment, thereby assisting customers to understand and assess each product’s appropriateness in relation to their own risk appetite. The internal assessment of various factors to calculate the risk of maximum loss, includes but not limited to, the asset class that the product belongs to, currency risk, price risk, credit risk, complexity risk and liquidity risk etc., and is for reference only. The product risk rating will be assessed quarterly, but the Bank may revise the risk rating assigned to a product in case of event triggering without any prior notice.