LEVERAGED FUTURES ACCOUNT

All futures contracts require initial margin. Generally, we adhere to the margin requirement prescribed by the exchanges which is usually about 5% to 10% of the contract value with maintenance margin at about 80%. The margins are subject to change without prior notice, depending on market volatility.

Margin call

There will be a margin call when the amount in the account falls below the maintenance margin requirements. You may make use of either or a combination of the following methods to fulfil the margin call:

1) Bring in new funds by the next market day to top up to initial margin levels and maintain your positions.

2) Liquidate some or all your positions to satisfy the margin call. Margin calls are considered satisfied upon end-day settlement (i.e. next trading day).

New positions cannot be initiated until the margin call is fulfilled. 
If margin calls are not satisfied, OCBC Securities reserves the right to liquidate some or all of your open positions.
Even if no margin calls are made, OCBC Securities reserve the right to liquidate your open positions if the equity in your account falls below 30% of the initial margin requirements of all your open positions, where equity is calculated by:

Equity = Value of all initial margin + Unrealised profit of all open positions - Unrealised loss of all open positions

Unrealised profit or unrealised loss of all your open positions shall be determined by OCBC Securities' sole discretion, with reference to the then-prevailing bid, offer or last transacted price of the contract.

You can access a comprehensive range of futures including Stock Indices, Currencies, Commodities, Energy, Metals and Interest Rates through our Leveraged Futures trading account. Find out more.

Specified Investment Products (SIPs) are complex financial products that have structures, features and risks that are more difficult to understand. You will need to meet certain educational qualifications, investment experience or work experience to be qualified, and additionally complete and submit a Customer Account Review (CAR) declaration form.

A Leveraged Futures Account allows you to trade futures and options using margin instead of paying the full contract value. This gives you the ability to take positions with a smaller upfront deposit. The account supports trading across major global markets through a dedicated futures trading platform. It is designed for investors who understand futures pricing, leverage, and the risks involved.

You can trade a wide range of futures and options across stock indices, currencies, commodities, energy, metals, and interest rates. Available examples include E-Mini S&P 500, MSCI Singapore Index Futures, crude oil, gold, and Treasury notes. The specific product list depends on the exchanges made accessible through the account. You may email the futures desk for additional available products.

Futures trading carries a high degree of leverage, meaning small price movements can lead to significant gains or losses. You may be required to top up substantial additional funds if the market moves against your position. If you fail to meet margin requirements, your positions may be liquidated and you may remain liable for any deficit. You should ensure the product is suitable for your risk tolerance and trading experience.

Margin represents the deposit required to open and maintain a futures position. Exchanges typically prescribe initial margin levels at about 5% to 10% of the contract value, with maintenance margin around 80% of the initial amount. These levels can change according to market volatility. Your account must maintain the required margin at all times to avoid a margin call.

A margin call occurs when your account balance falls below the maintenance margin requirement. You can meet the call by depositing new funds or by closing some or all of your positions. New trades cannot be initiated until the margin call is fulfilled. If you do not act within the required timeframe, your positions may be liquidated.

Your account equity is monitored continuously to ensure sufficient margin is maintained. If your equity falls below 30% of the initial margin required across all open positions, your positions may be liquidated by OCBC Securities even if no margin call has been issued.

Equity = Value of all initial margin + Unrealised profit of all open positions - Unrealised loss of all open positions

Unrealised profit or unrealised loss of all your open positions shall be determined by OCBC Securities' sole discretion, with reference to the then-prevailing bid, offer or last transacted price of the contract.

You will trade through a dedicated futures trading platform designed for global market access and real-time execution. The platform provides advanced tools suitable for active futures traders. You can also access a 24-hour dealing desk for additional support. Platform access is granted once your account is approved and funded.

To trade SIPs, you must meet certain criteria related to education, investment experience, or relevant work experience. You also need to complete the Customer Account Review (CAR) declaration. This assessment helps ensure that you have the sufficient knowledge, experience, and qualifications to trade complex products like futures and options.

Traders have access to a 24-hour dealing desk for execution support. They can also request for a demo account to understand the platform before trading live. Email support is available for product-specific queries. These services help traders navigate fast-moving markets effectively.

A Leveraged Futures Account is used to trade futures and options using margin, which involves leveraged exposure to a wide range of asset classes. Share Financing and Share Borrowing & Lending accounts are designed for leveraged share trading or borrowing shares for short selling. The products, risks, and collateral structures differ significantly. Traders should choose the account that aligns with their strategies and risk tolerance.