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What is the risk level? - Margin Requirements

1. How to view risk level?

The risk level is divided into safe, medium, warning, and dangerous.

1.1 When your account is in the "dangerous" status for a long time without depositing or closing the position, your positions will be forced to a liquidation until the account is not in "dangerous".

1.2 If you lose more because of the market fluctuations, your positions may be liquidated without prior notice.

1.3 Click "risk level" in the account page to view the details.

1.4 Your account risk level will be updated in real-time according to market fluctuation; If you have opened cross-market trading, your account risk level will also be affected by the Hong Kong stock market.


2. Check the risk level on the account status page

On this page, you can view the risk parameters, buying power parameters, asset parameters, etc. to help you manage the account risk.


3. How to operate after your account facing the risk of liquidation?

When your account is in danger, we recommend the following methods:

3.1 Deposit cash

3.2 Close positions

3.3 Transfer stock to increase the net asset value of the account

All three methods can help your account back to a "safe" level.

If you have a short position and you are faced with the risk of liquidation due to the insufficient number of securities that can be lent from the securities companies, it is recommended that you close some or all of the short positions. In extreme cases, it does not rule out the possibility of compulsory closing short positions of customers by securities companies without prior notice.


4. What you should know when facing liquidation?

When your positions are finally forced to be liquidated, please pay attention to the following points:

4.1 Futu will close positions in derivatives and stocks in accordance with the risk control criteria. The priority will be given to the target with higher risk, the target with less market value required to close the position that can release the "dangerous" status of the account will be first closed.

4.2 Due to market condition, market liquidity, and other reasons, when there is no optimal price or closing one position can not remove the "dangerous" status of the account, there might be multiple securities being liquidated or single security may be liquidated more than once.

4.3 Forced liquidation will generate transaction costs.