Here you'll find quick answers to common questions about intraday financing trade.

1. Which markets offer intraday financing trade?

Longbridge Securities provides the intraday financing trade services for designated stocks in the Hong Kong and US stock markets.

2. What is the order submission time for intraday financing trade?

Hong Kong market:

09:30–15:40 (Hong Kong time: GMT+8)

US market:

Summer time: 16:30–03:40 (Hong Kong time: GMT+8)

Winter time: 17:30–04:40 (Hong Kong time: GMT+8)

Note: After-hours intraday financing trade is not supported.

3. Do all stocks support intraday financing trade?

Not all stocks support intraday financing trade. If you want to check whether individual stocks support intraday financing trade, you can click to choose Longbridge App > Intraday Financing Account > Stock > Support Financing (view the figure below). For a list of eligible stocks for intraday financing trade, please click this link.

4. Does intraday financing trade support Hong Kong stock bidding orders?

Intraday financing accounts do not support bidding orders in the Hong Kong market.

5. Does intraday financing trade support pre-market orders for US stocks?

Orders from the intraday financing accounts are accepted 30 minutes after the US stock market opens in pre-market hours.

6. What happens if I use intraday financing trade and do not close my position at the close of the market?

If you use intraday financing trade, you should close your position 15 minutes before the closing to meet our margin requirements. If you do not close your position within the specified time, Longbridge Securities will implement a forced liquidation mechanism. Longbridge Securities will close the stock positions in your intraday financing account until there is no outstanding balance and cancel all orders without notifying you in advance.

7. Why is my order automatically canceled?

If you use intraday financing trade, or have unfulfilled orders that will be financed, Longbridge Securities will cancel all unfulfilled initial margin financing orders without prior notice to you 15 minutes before the closing.

8. What happens to my account if the net assets of my intraday financing account fall below the maintenance margin?

If the net asset value of your intraday financing account falls below the maintenance margin, Longbridge Securities will close the stock position in your intraday financing account without prior notice to you.

9. If a stock has poor liquidity and I have difficulty executing the closing instructions, what will happen to my account?

If market conditions (such as insufficient liquidity) or any action make it difficult or impossible for you or Longbridge Securities to execute and close your position, Longbridge Securities has the right to sell any securities or assets in any account you open with Longbridge Securities without prior notice to you to offset the relevant positions.

10. What should I do if my stock holdings are suddenly suspended?

During regular trading hours, the used buying power will remain unchanged until the account balance is calculated before the closing and the offsetting process is executed. The part that cannot be closed will be settled.

If there is still arrears after settlement, the intraday credit line will be recovered. According to the normal daily account arrears process, you need to deposit and reapply for credit lines after the balance returns to a positive value.

11. What will happen if I fail to fulfill my delivery obligations?

You need to fulfill your delivery obligations for the stocks you hold. If you fail to fulfill your delivery obligations due to closing or offsetting related positions or forced liquidation, you should pay the specified additional fees and interest to Longbridge Securities. Details of such fees and interest are set out on Longbridge App and the website and will be updated from time to time without prior notice.

12. Is the loan amount for intraday financing trade capped?

Generally no more than HKD 1 million, depending on the situation. The actual amount is subject to the customer's asset portfolio and approval results.

13. Are currency borrowing trades allowed?

They are allowed. If you deposit Hong Kong dollars into an intraday financing account, you can trade US stocks in your account. But please note that even if you have enough cash balance in your account as a whole, you may still lose money due to stock losses in currency borrowing trades, which will lead to interest expenses. You can choose to deposit funds or exchange currencies (if applicable) to make up for the outstanding balance.

14. If the arrears cannot be made up in time within days, will interest charges be incurred?

Yes, the amount owed will generate financing interest. For interest rates and interest calculation equations, please access to https://longbridge.hk/rate for rates.

15. If extreme weather conditions occur during sessions, how will intraday financing trade be arranged?

Longbridge Securities closes the financing limit of intraday financing limits at any time in response to extreme weather conditions (such as black rainstorm signal or typhoon signal VIII or above).

If you use intraday financing trade, you should close your position 15 minutes before the closing to meet our margin requirements. If you do not close your position within the specified time, Longbridge Securities will implement a forced liquidation mechanism. Longbridge Securities will close the stock positions in your intraday financing account until there is no outstanding balance and cancel all orders without notifying you in advance.

Disclosure

This article is for reference only and does not constitute any investment advice.