Introduction to unified buying power - Unified Buying Power

1. What is unified buying power?

Unified buying power is an aggregation of your buying power. FUTU calculates an aggregated buying power by evaluating your total assets, including cash, securities, and money market funds. It's available in markets where your margin accounts are opened. The evaluation is based on your assets in margin accounts and associated fund accounts.


2. What are the possible scenarios to use unified buying power?

Unified buying power can be used for securities tradings and HK IPO Subscriptions. Same-market cash/money market funds are counted toward cash buying power. 

For example:

● If you hold assets/money market funds in HKD, you can buy HK stocks, US stocks, and A-shares and subscribe to HK IPOs;

● If you hold assets/money market funds in USD, you can buy HK stocks, US stocks, and A-shares and subscribe to HK IPOs;

● If you hold assets in CNH, you can buy HK stocks, US stocks, and A-shares and subscribe to HK IPOs.


3. What are the charges?

There is no charge to enable unified buying power. However, interest will be accrued when the margin is used. For more information, please visit https://support.futuhk.com/topic417. 


4. Will my money market funds be redeemed automatically to my account with an outstanding balance?

If you have any account with an outstanding balance (including the frozen funds in IPO subscriptions), the system will automatically redeem the corresponding amount from your money market funds at 00:00 am (money market funds in HKD) and 07:00 am (money market funds in USD). In addition, because the HK IPOs deduction time is earlier than the fund redemption time, the system will redeem funds in HKD in advance to avoid the extra interest.


5. Is there anything I need to be aware of?

● Like ordinary margin trading, if you use margin to purchase stocks, please pay attention to the risk level of your account. If your account status reaches "Margin Call" due to the market fluctuation, you'll need to deposit funds or close positions to bring your risk level back to or below "Medium Risk."   

● Due to the daily redemption limitation set by the clearing broker, the actual redemption amount may not be enough to cover your outstanding balance, which may accrue extra interest. The system will continue to redeem the rest until there are no dues on your account.

● Once you disable unified buying power, the system will re-evaluate the risk level of your account (assets in other markets and money market funds are no longer used as the asset basis for risk level evaluation). A margin call therefore might be triggered. In addition, the system will not continue to redeem your money market funds automatically.


6. I haven't upgraded all my accounts to margin accounts yet. Can my margin accounts' buying power be aggregated?

Yes. The buying power of your margin accounts has been aggregated by default. FUTU will calculate the aggregated buying power by evaluating your margin account assets and money market funds. The aggregated buying power can be used in the market where margin accounts are opened.


7. Why doesn't my buying power get increased after I enabled unified buying power?

There may be several reasons why your buying power doesn't get increased:

● Unified buying power is only available for margin accounts, which will be effective after cash accounts upgrade to margin accounts.

● There is a limit to your buying power. It could be used up, but it will be restored after the quota gets released.


8. How much additional buying power can I get If I hold money market funds?

The additional buying power is 95% of the market value of your money market fund position, which may be adjusted according to the company's performance. 


9. Which currency will be used for transactions after I enable unified buying power?

Trading currency is subject to your investment products. When trading HK stocks, you'll be using HKD; when trading US stocks, you'll be using USD; and when trading A-shares, you'll be using CNH.

Cross-market trading will not involve currency exchange.


10. Why does my account still bear interest when I hold cash/money market funds?

Automatic transfers won't happen between your account with cash and account with an outstanding balance. The automatic redemptions from your money market funds won't be triggered either. Dues and accrued interest can be paid off by depositing or transferring cash or exchanging currency.