FUTU HK Help Center-What is the trading and settlement mechanism of leveraged forex
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What is the trading and settlement mechanism of leveraged forex

1. Transaction currency

USD


2. Transaction method

You don’t really need to pay the order amount to open a position. You can do so as long as your maximum buying power can cover the margin.


3. Order type

● Open a position: You can place limit orders, market orders, stop market orders, and stop limit orders.

● Close a position: You can place market orders, or use take profit/stop loss.


4. Order lot limit

● Maximum: A single order may contain up to 10 standard lots, which is equal to 1,000,000 units of the base currency.

● Minimum: A single order may contain as little as 0.01 standard lot, which is equal to 1,000 units of the base currency.


5. Position mode: hedging mode, meaning that locked positions are allowed.

Please also note that:

● If you hold the original and hedged positions overnight, a negative swap may occur (meaning that the swap payable is higher than the swap receivable).

● The orders to open or close the original and hedged positions are processed separately.

● When holding the original and hedged positions, you only need to maintain the margin of the position with a larger size.


6. Settlement method

● Daily settlement


7. Operation model

● Unless Futu specifies otherwise, it enters into an FX Transaction with you as principal using the 'straight-through processing' model. Where Futu acts as principal, Futu acts as the counterparty to your FX Transaction. Where Futu acts as agent, the FX contract is entered into by Futu on your behalf with a third party.

● Futu adopts the straight-through processing for all orders from its clients. It means that all the client orders will be submitted to and filled with the liquidity providers before they are filled with clients and execution prices are determined. The liquidity provider is be an affiliate of Futu.