Corporate  Banking
Corporate Deposit
Loan Financing
Financing Lease
Bill Business
Settlement Service
Corporate Wealth Management
Corporate E-banking
Investment Banking
Assets Custody Business
Institutional Banking
Corporate Annuity Service
Small Business Finance
More Services
Financial market
  Underwriting/Issuance
  Corporate Risk Management
  Products & Services
     -  Underwriting of Financial Bond (Finance Company)
     -  Investment products
    RMB Bond Borrowing and Lending
    Spot FX Trading
    Account-based Foreign Exchange
    Account-based Cruel Oil
    Two-Way Trading of Precious Metal via Account
    Regular Investment on Account-based Precious Metal
    Account-based Precious Metal
    Agency Bond Trade and Settlement
    Non-settlement Interbank Deposit
    Account-based Metals
    Account-based Agricultural Products
    OTC Book-entry Bond
    Spot Exchange Settlement and Sale
     -  Risk management products - exchange rate
     -  Risk management products - interest rate
     -  Underwriting of Debt Instruments of Non-Financial Enterprises
     -  Underwriting of Asset-backed Securities
     -  FX Interest Rate Swap under Remittance Payment Link
     -  Risk management products - commodity
     -  Underwriting of Super Short-term Commercial Papers
  Bond Trading and Settlement
  overview
Internet Finance
 
  Home Page > Corporate Banking >Financial market >Products & Services >Investment products >Two-Way Trading of Precious Metal via Account
Two-Way Trading of Precious Metal via Account
 

I. Business Description
Two-way trading of precious metals via account means that you sell precious metals first and buy them later. You sell precious metals via account before buying all or in partial the quantities of the precious metals in the selling account.
Two-way trading of precious metals via personal account is a new investment option. When you anticipate that the price of a particular precious metals will fall, you sell the precious metals first, and buy it later to earn price spread. ICBC provides quotation after taking into consideration the movement of precious metals prices in international and domestic markets and updates the price on a real-time basis in line with the market changes.

II. Target Customers
Personal customers who are well-experienced in buying/selling precious metals, able to bear the risk, and hold certain knowledge about the precious metals market.

III. Features and Advantages
Main features:
1. It gives you an opportunity to gain profit when the price of precious metals falls.
2. You have to assign or open a bank account and a trading account first, and open a margin account. Different margin accounts are used for trading precious metals via account in USD per ounce or RMB per gram. The same margin account is used for trading different categories (gold, silver, platinum and palladium) in the same currency.
3. Trading cost is low as there is no need for physical delivery, thus eliminating the expense for warehousing, assaying and transportation.
4. Transparent quote, ICBC quotes are highly transparent, real-time and in line with the international prices.
Main advantages:
1. Wide choice: gold, silver, platinum and palladium are precious metals available for buying/selling via account.
2. Multiple currencies: you can buy/sell precious metals in USD per ounce or RMB per gram.
3. Low initial minimum: The starting point for trading gold, platinum and palladium via USD account is 0.01 ounce in minimum increments of 0.01 ounce, The starting point for trading silver via USD account is 1 ounce in minimum increments of 0.01 ounce; the starting point for trading gold, silver, platinum and palladium via RMB account is 1 gram in minimum increments of 0.1 gram.
4. Long trading hours: 24-hour daily trading from 7:00 am Monday to 4:00 am Saturday.
5. Flexible options: spot transactions or placing orders. There are five types of orders: profit-taking order, stop-loss order, two-way order, one-to-many order and trigger order.
6. Safe and convenient: ICBC's safe, reliable and powerful banking system guarantees that you can buy/sell precious metals easily, manage and check precious metals accounts as well.

IV. Service Channels and Hours
You can sell precious metals via account and buy them later over the counter or through electronic banking channels (online banking, telephone banking and mobile banking) anytime within the trading hours.

V. Sign-up
1. Over the counter: if you have ICBC current deposit passbook (cardless passbook is not supported), Peony Money Link Card, Elite Club Account Card and ICBC Wise Gold Elite Club Account Card, please go to ICBC outlet within the business hours for risk tolerance assessment and product suitability assessment. If the assessment result of your risk tolerance is “balanced”, “growing” or “aggressive” and the assessment result of your product suitability is “suitable”, you will sign the ICBC Agreement on Trading precious metals via Account, and fill in the Application for Trading precious metals via Personal Account after assigning or opening a trading account.

2. Electronic banking: if you have registered ICBC’s personal electronic banking, you may sign the ICBC Agreement on Trading precious metals via Account through ICBC’s online banking and mobile banking. You can conduct the transactions through electronic banking channels after assigning or opening a trading account.

VI. Risk Warning
Two-way trading of precious metals via account involves many risks such as policy risk, price risk, interest rate risk, exchange rate risk, security risk in communication system and security risk in network system. Prices may fluctuate in real time depending on the international political and economic factors and other emergency events. You should be fully aware of the inherent risks and bear the investment risks arising from price fluctuations.

VII. Matters Meriting Attention
1. Two-way trading of precious metals via account involves the transfer and lock-up of margin. Before selling, an amount equivalent to the quantity of precious metals in the selling account will be transferred from your bank account to the margin account. After selling the precious metals, ICBC will freeze your amount as the margin for the loss. The quantity of precious metals sold will be recorded in your trading account with no payment against your selling amount. When you buy all or part of the precious metals, ICBC will mark down in your trading account the quantity of precious metals you bought with no deduction against your purchase amount. The gain/loss will be recorded in your margin account. ICBC will use your purchase quantity and weighted average selling price to calculate the unfreezing amount and unfreeze the margin amount.
2. No interest will be accrued to the amount in your margin account.
3. You can not report the loss of amount in your margin account or withdraw cash directly from the margin account. ICBC will not issue certificate of deposit for your margin account. The amount in your margin account can not be used as guarantee for other debts.
4. When your margin ratio ((book gain/loss + amount in margin account) / lock-up margin for your selling) is 50% or lower, ICBC will send a SMS to alert you the risk (provide your mobile number to ICBC if necessary); if your margin ratio is 20% or lower and your position has not yet been closed, ICBC reserves the right to close your position in full amount. You are liable for the loss if any.
5. ICBC reserves the right to adjust the bid/ask prices, margin ratio, trading hours and others. ICBC will announce all changes through website, tips or other appropriate options to inform the customers.

VIII. Definitions
Profit-taking entrust: an order whose price is superior to the spot trading price. The customer buys precious metals at a price lower than the spot bid price or sells precious metals at a price higher than the spot ask price. The order will be closed when the quoted price reaches the profit-taking price.
Stop-loss entrust: an order whose price is inferior to the spot trading price. The customer sells precious metals at a price lower than the spot bid price or buys precious metals at a price higher than the spot ask price. The order will be closed when the quoted price reaches the stop-loss price.
Two-way entrust includes profit-taking order and a stop-loss order. Upon the closing of either one, the other will be void automatically.
One-to-many order: an order that includes two or more than two orders placed at the same time. Arranged in the order of selection, the orders involve the same trading currency, different types of transaction and the same trading direction. When the quoted price reaches the price of a particular order, the order will be closed and the other orders will be void; when the quoted price reaches the price of several orders, the first order will be closed and the other orders will be void. One-to-many order can include as many as six orders at the same time.
Trigger order: an order that takes effect at the trigger price. The order will take effect when the quoted price reaches the trigger price and when the quoted price reaches the price of the order, the order will be closed.

Note: Information herein is for reference only. Please refer to announcements and regulations of local branches of ICBC for further details. ICBC retains the ultimate interpretation rights.


Close