Margin Requirement

Initial margin requirement is 5% of the currency contract value or such other level as South China may specify from time to time. Client is required to have sufficient initial margin prior to opening position in currency contract, whereas maintenance margin for an outstanding position in currency contract must be at 3% or above the contract value or such other level as South China may specify from time to time. For margin deficiency, client is required to top up to the initial margin level regardless notification is received or not. In the case when a client's maintenance margin falls to or below 1% of the contract value, South China, will at its discretion, force liquidate any or all client's outstanding contract(s) without giving any prior notice to client or obtaining client's consent. Client shall be responsible for any deficiency if the proceeds of liquidation is insufficient to cover all outstanding balances owing by the client to the South China. South China reserves its rights to amend the Margin Requirement from time to time.