When clients engage in short selling, i.e. borrowing securities from a broker and sell them, the system will require a collateral amount to ensure that customers have the ability to return the securities.
● For short selling Hong Kong Stocks, a cash amount of 105% of the market value of the borrowed shares will be debited from your account as the short selling collateral.
● For short selling US Stocks, the short selling collateral will be a cash amount equal to the market value of the borrowed shares.
The short selling collateral does not go into your cash buying power and will reduce your available cash.