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How does the leverage work for the margin trading?

leverage margin trading
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How does the leverage work for the margin trading?

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If you plan to buy 1,000 shares of Stock A at HK$50 per share, the total transaction consideration will be HK$50,000. Given the margin ratio of Stock A is 60%, you only need to pay HK$20,000 out of the purchasing. (Fees, levies and other translation costs are not included in the above example for simplicity.

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