What are the risks associated with FX services?
Below are the material risks involved in FX services:Foreign Exchange Risk: Foreign exchange markets are subject to unpredictable fluctuations and may be affected by complex political and economic risks. Therefore, if you (i) convert Hong Kong dollars to any other Specified Currencies and (ii) convert any other Specified Currencies to Hong Kong dollars in any FX Transactions, such FX Transactions will be subject to risk arising from exchange rates fluctuation. As a result, you may suffer losses.Counterparty Risk: We enter into FX Transactions under the FX Terms on a principal-to-principal basis and you are therefore subject to the risk that we fail to perform our obligations under the FX Terms.In relation to FX Transactions involving the offshore Chinese Yuan Renminbi (CNY) , the CNY exchange rate, like any other foreign currencies are affected by a wide range of factors and is subject to fluctuations. CNY cannot be freely exchanged for other currencies (including Hong Kong Dollars) and the exchange of CNY through banks in Hong Kong is subject to restriction specified by us, relevant policies, regulatory requirements and restrictions that applicable to such FX transactions from time to time. The actual exchange arrangement will depends on the policies, requirements and restrictions prevailing at the relevant time.
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