The maximum number of shares you can buy on margin depends on the initial margin of the stock and the asset condition in your account. Each stock may have a different margin. The minimum margin for buying long is 50%. You can see the maximum number of shares you can buy when placing an order, as shown in the following picture:
The maximum number of shares you can borrow for short selling also depends on the initial margin of the stock and the asset condition in your account. If you do not have sufficient funds, Futu will automatically provide you with loans based on the assets (including but not limited to cash, positions, frozen funds, etc.) in your account to maintain sufficient collateral. The minimum margin for selling short is 60%. You can see the maximum number of shares you can buy when placing an order, as shown in the following picture:
Margin trading entails greater risk, including, but not limited to, risk of loss and incurrence of margin interest debt, and is not suitable for all investors. Please assess your financial circumstances and risk tolerance before trading on margin.
When short selling there is no limit on how high a stock price could rise so the potential loss is unlimited. Other risks include dividend risk and margin risk, this strategy is not appropriate for all investors.
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