Leveraged Forex Account

Explore more investment
opportunities in currency trading and precious metals


  • 24-hour market access, from Monday to Saturday
  • High liquidity for active trading
  • Trade over 35 currency pairs including spot gold and spot silver
  • Margin requirements from 2.8% onwards for individuals
    *Margin requirements are subjected to review from time to time

Eligibility
  • Age 21 and above
  • Classified under unlisted SIPs. Competency in terms of knowledge and experience of leveraged FX trading through CKA (Customer Knowledge Assessment)
  • Initial deposit from S$1000 to open an account


How to apply

Tradable products & trading channels

Tradable products

Forex and Precious Metals

Buy or sell currency pairs and spot gold and spot silver with the use of leverage, 24 hours a day. Diversify your portfolio with more than 35 currency pairs globally. Enter and exit the extremely liquid foreign exchange market at the mere click of a button.




Trading channels

iOCBCfx (for retail customers)

Trade conveniently via our online platform for forex and precious metals.

iOCBCfxpro (for corporates and professionals)

Trade over 35 currency pairs and precious metals on iOCBCfxpro.





How it works

The basics of a Leveraged FX transaction

The basic strategy of trading centres upon one of these simple decisions, either a “buy” or a “sell” or a combination of both.


In general currency exchange, this could be illustrated by the following example:

  • A buyer wants to buy US$100,000 against JPY at the exchange rate of 112.29. The buyer receives US$100,000 and pays ¥11,229,000.
  • In the opposite scenario, at the rate of 112.27, the seller pays out US$100,000 and receives ¥11,227,000.
  • The buyer or seller needs to pay out in full and complete the settlement immediately.


In Leveraged FX trading, the trader only needs to pay an initial good faith deposit (or initial margin), giving the trader leveraging power.
 
FX Price Quotation: USD/JPY 112.27/29

From the trader’s perspective, the buy rate is 112.29 and the sell rate is 112.27


Using the above example to illustrate a buy trade in Leveraged FX trading:

An initial margin of 4.2% is required, which translates to a pay out of US$4,200 to buy the contract of 100,000 USD/JPY at a rate of 112.29. The trader has initiated a long position of 100,000 USD/JPY on 28 June 2017. The value date of the transaction is 30 June 2017.
 
For trading purposes, the currencies bought or sold will normally not be delivered to the trader. Generally, the settlement date (known as value date) is 2 business days later with the exception of USD / CAD which settles on the next business day. This mode of FX transaction is known as “Spot FX”.

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What is a pip?

A pip is the last decimal quotation and the minimal movement of a currency pair. Most currency pairs have 4 decimal places, 1 pip is the 4th decimal place (0.0001) in the currency quotation. For example, in EUR / USD, a movement from 1.1404 to 1.1405 represents an increase of 1 pip.


Yen-based currency pairs have 2 decimal places and 1 pip here is the 2nd decimal place (0.01) in the currency quotation. For example, in USD/JPY, a movement from 112.30 to 112.31 represents an increase of 1 pip. iOCBCfx offers fractional pip pricing (an extra digit to the right of the decimal place). 

Fractional pip pricing is an advantage to the individual trader as it reduces bid/offer spreads. The pip is also a means to measure the profit or loss. Pip value is usually based on the second currency / denominating currency.

For example:

EUR/USD
1.1404
without fractional pip
EUR/USD
1.14045
with fractional pip

 

USD/JPY
112.30
without fractional pip
USD/JPY
112.305
with fractional pip

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Calculating profit and loss

Profit or loss is generated when a position is closed.


In the following example, the trader decides to initiate a long position at USD/JPY 112.29 as he expects the USD to rise in value and the JPY to fall (Occurrence A). If the USD strengthens to 114.29 as he has expected, the trader will make a profit of ¥200,000. In addition, the trader pays a commission, for example, 1 pip or ¥1,000 for each buy and sell transaction, resulting in a total profit of ¥198,000.

Should Occurrence B happen, the trader suffers a loss of ¥200,000. With a commission, the total loss will be ¥202,000.

   Scenario  Long Position
(Buy 100,000 USD/JPY)
Occurrence A Price moved up by 200 pips from USD/JPY 112.29 to USD/JPY 114.29  

The profit will be:
amount x (selling price – buying price) = 100,000 x (114.29 – 112.29) = ¥200,000

With a commission, for example, 1 pip or ¥1,000 for each buy and sell transaction, the total profit will be:
200,000 – 2,000 = ¥198,000

Occurrence B Price moved down by 200 pips from USD/JPY 112.29 to USD/JPY 110.29

The loss will be:
amount x (buying price – selling price) = 100,000 x (112.29 – 110.29) = ¥200,000

With a commission, for example, 1 pip or ¥1,000 for each buy and sell transaction, the total loss will be:
200,000 + 2,000 = ¥202,000



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How does the swap rate affect a Leveraged FX trade?

A swap rate is the interest that the trader receives or pays according to the interest differential when a position is rolled overnight in a foreign exchange trade.


It is dependent on the interest rate of the respective currencies involved in the foreign exchange trade and may vary daily according to the market’s expectation of the respective central bank’s interest rate.

If the trader intends to buy USD/JPY, the trader would have to pay interest on JPY borrowed and earn interest on USD.

For example, assuming the rollover swap rate is for a 3-day period and a position of 100,000 USD/JPY.

Swap Quote
 Currency Pair  Sell (Pips Value)  Buy (Pips Value)
 USD/JPY  (0.44)  (0.14)


Given that the swap rate is quoted in pips value, the buy rate for USD/JPY is interpreted from the third decimal place onwards; 0.0014. Similarly, the sell rate will be 0.0044.

Pips Value Sell (Short) Buy (Long)
Positive rate Trader receive Trader pay
Negative rate Trader pay Trader receive

If the trader has a long open position of 100,000 USD/JPY, the interest received by the trader over the 3-day period is:

0.0014 x 100,000 = ¥140

This means that the trader earns ¥140 in interest over a 3-day period. Hence, the interest earned in 1 day would be 140 / 3 = ¥46 (rounded down).

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2 ways to apply

By mail

Please mail in copies of the necessary documents and forms:
1
NRIC/SAF/SPF ID

for Singaporeans and Singapore PRs

or
Passport

(with 6 months validity) for foreigners

2
Forms

Download and complete the appropriate forms.

Required forms

  1. Application form(individual)
  2. Application form (joint)

Risk warning for trading leveraged FX

Risk warning for trading leveraged FX

Transactions in leveraged FX carry a high degree of risk. The amount of initial margin is small relative to the value of the leveraged FX transaction. As such, the transaction is highly 'leveraged or 'geared'. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit; this can work in your favour or against you. You may sustain a total loss of the initial margin funds and any additional funds deposited with the firm to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to deposit substantial additional funds on short notice in order to maintain your position. If you fail to comply with a request for additional funds within the specified time, your position may be liquidated at a loss and you will be liable for any resulting deficit in your account.

 

3
Supporting Documents

Include any one of the following documents (original and no older than 3 months from date of application) :



  • Phone bill
  • Bank statement
  • Income tax statement
  • CPF statement
Mailing address

OCBC Securities Private Limited
18 Church Street #01-00
OCBC Centre South
Singapore 049479

Please note:

All forms and supporting documents are required to be certified by one of the following:

  • Authorised OCBC Securities officer or;
  • OCBC Bank officer (the authorised bank officer must affix the Bank’s stamp and indicate his name and employee ID on the document) or;
  • Notary Public, Advocates & Solicitors, Singapore Embassy or Justice of Peace. For a list of our approved Solicitors, please contact our customer service officers. The witnessing officer should provide name, contact number and website address.


To apply for a Corporate Account, please contact us at (65) 6536 9812 or fxdealing@ocbcsec.com

At OCBC Securities Investors Hub

1
NRIC/SAF/SPF ID

for Singaporeans and Singapore PRs

or
Passport

(with 6 months validity) for foreigners

 

 

2
Find us at:

OCBC Securities Private Limited
18 Church Street
#01-00 OCBC Centre South
Singapore 049479

Need help?

1800 338 8688

 or contact us online