Leveraged foreign exchange is in a kind of margin trading. Once open the forex account, you can trade after deposit minimum 5% of contract amount in Hong Kong dollars. In other words, the leveraged ratio can enlarge up to 20 times.
Because leveraged foreign exchange transactions do not have a central pricing source and there is no unified central trading floor, the transaction prices are determined by the firm.
LFET price quotes of Phillip are obtained from third party with certain adjustments made and can be traded directly. As LFET are OTC transactions, spot price quotes may vary among firms. Phillip is unable to guarantee that transactions can be executed at the quoted price.

The contract size is 10,000. For example, USD/JPY, the contract size is USD10, 000, client at least need to deposit 5% (USD500) or the equivalent of HKD3900 to trade USD/JPY. The investment P&L and interest are calculated in Japanese Yen.

Margin Call
When the account equity falls below the maintenance margin level, Phillip will make best effort to issue margin call via phone, email or text message (where applicable) etc., requesting the client to restore the account equity to the initial margin level within a specified time via one of the following actions:
i. Deposit the margin amount; or
ii. Transfer from other Phillip accounts; or
iii. Close out the open positions.
Otherwise, Phillip will force liquidate the open positions. Client shall remain liable for any deficit in the account.
Moreover, at volatile market conditions, Phillip reserves the right to call for margin deposit from time to time. Client should always pay attention to open positions and allow sufficient equity to cover potential margin shortfall.

Force Liquidation
a) Phillip will make best effort to call client margin, however, it may not be able to contact client in a timely manner due to various reasons (including volatile market conditions). If client cannot restore the account equity to initial margin level within specified time or if the account equity falls below the "Force Liquidation level", Phillip may request client to or force close position(s).
b) If equity falls below the required margin level or has negative balance when market opens after weekend or holiday, Phillip will make best effort to call client margin or force close position(s) at market price. Client shall remain liable for any deficit in the account.
c) Phillip will notify client of any force liquidated position(s) by telephone, email or message, and also identified those transactions in the statement. If the force liquidation is not sufficient to cover negative balance in the account, client shall remain liable for any deficit in the account.
d) The risks associated with leveraged foreign exchange trading can be extremely high. During volatile market conditions, Phillip may not be able to immediately close positions on accounts that have fallen beyond the force liquidation level. The client may suffer a loss in excess of the initial margin amount.

Buying high-interest currencies to earn interest is one of the viable forex investment strategies, but investors need to be aware that when they misinterpret the market conditions and lose money, the interest gain is often not enough to compensate for the trading loss. It is therefore client should consider currency trends.

Leveraged foreign exchange margin is settled in Hong Kong Dollars. Please make sure that you have sufficient HKD margin in your account for holding positions overnight. If you hold open positions overnight and the HKD equity is less than the initial margin (5% of the held contracts), interest will be charged on the margin owed.