1. How is the available amount for fund subscription calculated?
1.1 For subscription of Cash Plus or a fund portfolio:
- If margin financing and auto redemption have been enabled, funds frozen for open orders can also be used to subscribe to Cash Plus. In this case, the available amount is calculated as follows:
Available amount = Withdrawable amount in the payment account + Funds frozen for open orders
- otherwise, the available amount is calculated as follows:
Available amount = Withdrawable amount in the payment account
1.2 For subscription or reservations of a mutual fund or a private fund:
Cash amount available = Cash buying power of the payment account
This is the maximum amount you can currently use to subscribe to funds without margin financing.
Maximum amount available = Maximum buying power of the payment account
This includes the amount you can borrow against your stock holdings. This applies only to certain funds that support margin subscription. If your payment account is a margin account and SmartSave - auto redemption is enabled, your Cash Plus holdings count toward both the cash amount available and the maximum amount available.
2. How do I subscribe to funds on margin?
You can use margin financing if margin financing has been enabled and the fund is eligible for margin financing. This applies to real-time subscription or reservations of a mutual fund (Cash Plus and fund portfolio are not included) or a private fund.
2.1 Real-time subscription
If the order amount exceeds your cash buying power, the system will notify you that margin financing will be used for the excess amount. If the order amount does not exceed your cash buying power, the subscription will be paid for entirely in cash.
2.2 Reservations
If you choose "Pre-Order on Margin", the system will automatically use margin financing on the payment date if the order amount exceeds your cash buying power. Otherwise, the subscription will be paid for entirely in cash.
