Common use of Multi-Currency Clause in Contracts

Multi-Currency. a. The Client may be able to trade products denominated in different currencies using a base currency chosen by him. The Client understands that to trade foreign investments, it may be necessary convert foreign currencies into Hong Kong dollars and vice versa under the applicable rates at the time of conversion. The Client hereby authorizes COL to make all necessary foreign currency transactions in the Account to facilitate trading and receipt of any amounts related thereto, including sales proceeds, dividends, and other distributions. The Client acknowledges that COL and/or the Executing Broker have the authority to determine the appropriate exchange rate for any currency conversion and agrees to pay any charges that may be imposed due to such transactions and that the spread of currency conversion and exchange rate relayed to the Client is merely indicative and may be updated from time to time. The Client understands that the actual exchange rate may differ from the indicative exchange rate. b. If required by the Executing Broker, upon purchase of a product denominated in a different currency from the base currency, a margin loan may be created to fund the purchase, secured by the assets in the Client’s Accounts. If the Client maintains positions denominated in foreign currencies, COL and/or the Executing Broker will calculate Margin Requirements by applying exchange rates specified by them. COL and/or the Executing Broker will apply "haircuts" (a percentage discount on the foreign currency equity amount) to reflect the possibility of fluctuating exchange rates between the base currency and the foreign currency. The Client must closely monitor margin requirements at all times, particularly for positions denominated in foreign currencies, because fluctuation in the currency and the value of the underlying position can cause a margin deficit. c. The Client agrees that obligations to the Client shall be denominated in: (i) the United States dollar; (ii) a currency in which funds were deposited by the Client or were converted at the request of the Client, to the extent of such deposits and conversions; or (iii) a currency in which funds have accrued to the Client as a result of trading conducted on a designated contract market or registered derivatives transaction execution facility, to the extent of such accruals. The Client further agrees that COL and/or the Executing Broker may hold customer funds in: (i) the United States; (ii) a money center country as defined by the US Commodity Exchange Act and regulations thereunder; or (iii) the country of origin of the currency. In addition, the Client acknowledges and authorizes COL and/or the Executing Broker to hold the Client’s funds outside the United States, in a jurisdiction that is neither a money center country nor the country of origin of the currency in order to facilitate the Client’s trading in investments denominated in that currency.