The NV available to buy on cash of a bond is calculated based on the Cash Withdrawable of the payment account.
The maximum NV available to buy of a bond is calculated based on the Maximum Withdrawable Amount of the payment account. The part of nominal value exceeding the NV available to buy on cash will be financed by Futu. However orders with a nominal value exceeding the maximum NV available to buy could not be placed.
By using stocks and unsettled funds in the Futu securities accounts as collateral, customers can borrow more funds from Futu to buy bonds. Using financing amplifies both gains and losses, thus clients shall have strong risk tolerance.
The annualized margin rate of USD bonds is 4.8%. Interests will be charged on a natural day basis and will be deducted at the end of the month.
If the NV of the order exceeds the NV Available on Cash but not the Maximum NV Available, the exceeding part will be processed as using financing automatically.
You can increase the Cash Withdrawable or Maximum Withdrawable Amount of your payment account by depositing more money or closing part of your position.