HK Stock Baskets
FXCM’s HK Stock Baskets contain a number of individual stocks relating to a specific sector.
At the time of the basket inception, each stock was given a value in HKD $ terms. The baskets will from that point forward measure the collective performance of each of the correlated components.
ATMX’s original price was $16,000 and Tencent represented $4,000 of that $16,000.
If today that same amount of Tencent shares that were worth $4,000 is now worth $4,150, that stocks contribution to FXCM’s ATMX price will be $4,150.
The contribution of each of the stocks will formulate the current rate of a Stock Basket.
Margin Requirements are updated daily after the market close.
Currently HK Stock Basket is leveraged at approximately 5:1 and the new margin requirement will be the equivalent of approximately 20% of the notional value of 1 contract.
For example, if the ATMX is 16,000 during the market break, the Margin Requirement for one contract will be updated to HKD 3200.
Please click here for trading hours.
Please note, however, that hours are subject to change based on Daylight Savings Time. Also, FXCM’s Stock Baskets do not expire, but will not be open for trading during holidays in which the reference markets are closed.
Maximum Contract Size
The maximum number of contracts per click (trade) for HK Stock Baskets is 500.
Minimum Pip Cost (Value)
HK Stock Baskets have minimum value of HK$1 per point (Your per point value may be different if your account is denominated in a different currency. Please refer to the Simple Dealing Rates Window in Trading Station for this value). The pip/point location is shown below.
HK Stock Baskets do have financing cost (Rollover)
For more information on financing costs, please refer to:
Dividends and Withholdings
Dividend adjustments will apply on the eve of the ex-dividend date of the constituent members of the relevant Basket. The adjustment will appear on your statement and the amount of the adjustment per contract can be seen in the simple dealing rates window of the Trading Station platform in the day prior to the debit/credit.
In the event that one of the individual components of a Basket does not receive a price update for 1 minute, the Basket will become temporarily untradeable. This may result in hanging orders on TS2 or Rejected orders on MT4*. We recommend trading with caution around any period of low liquidity.
In the event of significant drawdown of one of the components or a corporate action, the Baskets may require a periodic rebalancing. In the event of a rebalancing a component of the basket may be replaced or all open positions may be closed with little or no notice.
*Currently ATMX is only available on Trading Station accounts.