FUTU HK Help Center-What are securities borrowing collateral rules?
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What are securities borrowing collateral rules?

When clients engage in short selling, i.e. borrowing securities from a broker and sell them, the system will require a collateral amount to ensure that customers have the ability to return the securities.

● For short selling Hong Kong Stocks, a cash amount of 105% of the market value of the borrowed shares will be debited from your account as the short selling collateral. 

● For short selling US Stocks, the short selling collateral will be a cash amount equal to the market value of the borrowed shares. 

The short selling collateral does not go into your cash buying power and will reduce your available cash.

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