1. Basic Facts to be shared with you on purchasing securities on margin, and to alert you to the risks involved with trading securities in a margin account.
2. When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from Moomoo Securities Malaysia Sdn. Bhd. (Formerly known as Futu Malaysia Sdn. Bhd.) (“The Firm). If you choose to open an account with Moomoo Securities Malaysia Sdn. Bhd., you are effectively opening a margin account. Should you wish to disable the margin facility option, you will have to change it manually under account settings. Subjected to the Firm's sole discretion, you have to open a margin account with the Firm if you choose to borrow funds from The Firm.
3. The securities purchased are The Firm's collateral for the loan to you. If the securities in your account decline in value, so do the value of the collateral supporting your loan, and, as a result, The Firm can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held with The Firm, to maintain the required equity in the account. It is important that you fully understand the risks involved in trading securities on margin.
4. These risks include and not limited to the following:
- You can lose more funds than you deposit in the margin account.
A decline in the value of securities that are purchased on margin may require you to provide additional funds to The Firm that has made the loan to avoid the forced sale of those securities or other securities or assets in your account(s).
- The Firm can force the sale of securities or other assets in your account(s).
If the equity in your account falls below the maintenance margin requirements, or The Firm's higher「house」requirements, The Firm can sell the securities or other assets in any of your accounts held at The Firm to cover the margin deficiency. You also will be responsible for any shortfall in the account after such a sale.
- The Firm can sell your securities or other assets without contacting you.
Some investors mistakenly believe that a firm must contact them for a margin call to be valid and that The Firm cannot liquidate securities or other assets in their accounts to meet the call unless The Firm has contacted them first. This is not the case. Most firms will attempt to notify their customers of margin calls, but they are not required to do so. However, even if The Firm has contacted a customer and provided a specific date by which the customer can meet a margin call, The Firm can still take necessary steps to protect its financial interests, including immediately selling the securities without prior notice to the customer.
- You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call.
Because the securities are collateral for the margin loan, The Firm has the right to decide which security to sell to protect its interests.
- The Firm can increase its in-house maintenance margin requirements at any time and is not required to provide you advance written notice.
These changes in firm policy often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the call may cause the member to liquidate or sell securities in your account(s).
5. This brief statement cannot disclose all the risks and other aspects of margin trading. You should therefore carefully study the terms, conditions, the rules, and regulations pertaining to margin trading before engaging in this activity. You agree to undertake such transactions only if you carefully consider whether margin trading is appropriate in light of your financial position, risk tolerance, investment experiences, and other relevant circumstances. If you are in doubt in relation to any aspect of this statement or the terms of margin trading, you shall seek independent professional advice before investing. You shall assume full responsibility for all the purchases and sales of securities in your margin account.