Client Guideline

Initial margin (IM)

IM is the upfront collateral required to open derivatives positions.

IM is calculated as follows: 

IM = IM ratio x number of contracts x M x price

In which:

IM ratio is determined by HSC and is subject to change. The current IM ratio is as below:        

VN30 & VN100 Index Futures Contract: IM ratio = 17%

M is contract multiplier. Each product has different M.

VN30 & VN100 Index Futures Contract: M = VND100,000

Price:

• During trading hour, price is the closest matched price, or
• After trading hour, the last payment price is determined by clearing house. 

Maintenance Margin (MM)

Maintenance Margin is the minimum amount of margin that must remain in account to keep derivatives positions open.

MM is calculated as below:

MM = MM ratio x IM

In which, MM ratio is determined by HSC and is subject to change. Currently, HSC is applying an MM ratio of 80%.

If your account balance drops below the Maintenance Margin, HSC will send a Margin Call notifying you of the amount you need to deposit to restore the required margin level. 

Margin ratio

Margin ratio (R) = (Equity Balance) / (Initial margin)

Margin ratio indicates the current risk level of client’s account.

HSC’s regulations:

Margin Call

Margin Call is the amount of fund that clients must deposit in their accounts to bring the account balance back to the IM level:

Margin call is calculated as below:

Margin Call = Initial Margin – Equity Balance

Notification on Deposit of Margin Call

When clients’ account balance drops below the MM level, from 16:30 PM on the T day, clients will receive notification from the registered communication channels (SMS, email) on the margin call requirement.  

Margin Call Process

Clients must deposit the required margin or reduce positions to restore the account to the IM level before 11:30 on T+1 business day.

By 13:00 PM on T+1 business day, HSC will close clients’ positions as soon as possible on T+1 business day.