The frozen amount generated during grey market trading is equal to the cumulative net sell transaction amount of grey market stocks.
For example:
- Assume you purchase HKD 2,000 worth of Grey Market Stock A.
- Continuing from the above example, you then sell HKD 3,000 worth of Grey Market Stock A.
- Frozen amount = HKD 1,000
- Continuing from the above example, you then purchase HKD 4,000 worth of Grey Market Stock B.
- Frozen amount = HKD 1,000
- Continuing from the above example, you then sell HKD 5,000 worth of Grey Market Stock B.
- Frozen amount = HKD 2,000
Therefore, the final frozen amount is calculated as:
Net sell amount of Grey Market Stock A + Net sell amount of Grey Market Stock B