Margin Call

1. Agreement between the client and CHIEF covers two types of margins, the initial and maintenance. Amount of margin demanded by the Exchange changed from time to time.
2. Initial margin must be fulfilled before you begin to trade.
3. Initial margin must be cash-settled.
4. Margin call would be made by our company whenever the amount value of open position falls below the maintenance margin. Client must deposit additional funds to restore the account to the initial margin level.
5. Opening a new position or money withdrawal is prohibited when margin calls occur.
6. If client fails to meet the margin call, our company reserves the right to liquidate the client's open positions without any further notice.

All information is subject to change without prior notice.

Memorandum of Order Placing

1. All order instructions must be placed by the Client either in person or by phone, to our licensed representative.
2. To protect clients’ interest, all the phone conversations are recorded in our system.
3. Clients should provide the following information when placing the order by phone:
   
   1. Account Number & Name
   2. Buy or Sell
   3. Contract Name
   4. Price
   5. Quantity
4. Clients should pay attention to the order price. Order price can be a market order or limit order. Market order will follow the market price to volatile.
5. Unless the order(s) has been canceled, otherwise the order(s) will be valid until the market closed.
6. After completion of an order, we will confirm with the clients ASAP. In case, there is no confirmation after the market closed, clients are responsible for calling back and checking their order status.
7. If the clients place the order or complete the transaction by phone, the order may not be shown on the Internet trading platform immediately. Clients are responsible to call us to check their order status.

All information is subject to change without prior notice.

Position Limits and Large Open Positions Reporting Requirements

In accordance with the Chapter 571Y Securities and Futures (Contracts Limits and Reportable Positions) Rules, no person, other than the person authorized, may hold or control futures contracts or stock options contracts in excess of the prescribed limit. Section 6 of the Rules stipulates that any person who holds or controls a reportable position shall lodge a notice in writing of that reportable position with the recognized exchange company concerned.

CHIEF, as your agent, submits a notice of a reportable position to the Exchange. In the event that you hold or control a reportable position in accounts at more than one Exchange Participant, you should assume the sole responsibility to notify the Exchange of the reportable position. In the event that you hold open positions in Holiday Trading Exchange Contracts (“H-Contracts”) in excess of a LOP and submits the LOP report to HKFE directly (instead of via CHIEF) shall be subjected to the LOP reporting procedures on H-Contracts.

For details of the "Position Limits and Large Open Positions Reporting Requirements", please visit the following webpages:

• HKEX - Large Open Positions and Position Limits
• HKEX - Introduction of New Large Open Position (“LOP”) Reporting Procedures for Derivatives Holiday Trading
• SFC - Guidance Note on Position Limits and Large Open Position Reporting Requirements