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- What is Index Futures Contract?
Futures Contract is an agreement to buy/sell financial instrument on a specific date (maturity date/settlement date) at a pre-determined price.
- What is Initial Margin?
Initial Margin is the amount of money required by the exchange to be deposited before the client opens a futures contract.
- What is Margin Call?
While the Equity falls below the Maintenance Margin, client will be asked to deposit a specific amount within a specified period in order to keep the equity level up to initial margin.
- What is Hong Kong Futures Pre Market Opening Period?
Pre Market Opening Period is a time period for market to determine the Opening Price to reduce the price volatility.
Hong Kong Futures Pre Market Opening Period (Not including Mini H-Shares Index Futures)
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Morning Session
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Afternoon Session |
| Input Limit Order Period |
9:15a.m. – 9:41a.m. |
2:00p.m. – 2:26p.m. |
| Input Auction Order Period |
9:15a.m. – 9:43a.m. |
2:00p.m. – 2:28p.m. |
| Open Allocation Period |
9:43a.m. – 9:45a.m.
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2:28p.m. – 2:30p.m. |
| Cancel Order Period |
9:15a.m. – 9:41a.m. |
2:00p.m. – 2:26p.m. |
- What is Hong Kong Futures Auction Order (AO)?
An Auction Order is an order that does not have a price limit assigned by a trader and it will be matched at the Calculated Opening Price (COP) during the Pre-Market Opening Period.
- When is Hong Kong Futures/Options Last Trading Day?
Last Trading Day is the business day immediately proceeds the last business day of the contract month.
- When is Hong Kong Futures/Options Final Settlement Day?
Last Settlement Day is the first business day after the Last Trading Day.
- What is Hong Kong Futures Final Settlement Price?
The Final Settlement Price for Hang Seng Index Futures Contracts shall be a number, rounded down to the nearest whole number, determined by the Clearing House and shall be the average of quotations of the Hang Seng Index taken at five (5) minute intervals during the Last Trading Day and complied, computed and disseminated by HIS Services Ltd. The Chief Executive of the Exchange has the power under the Regulations for trading Stock Index Futures Contracts to determine the Final Settlement Price under certain circumstances.
- Hong Kong Futures/Options Contract trading hours on Last Trading Day?
Hong Kong time 9:45a.m. – 12:30a.m. and 2:30p.m. – 4:00p.m.
- What is Index Options Contract?
Buyers of Options Contract have the right to buy/sell financial instrument on a specific date at a pre-determined price (exercise price).
Sellers of Options Contract have the obligation to buy/sell financial instrument on a specific date at a pre-determined price (exercise price).
- How many types of Options Contract?
Options Contract can be classified into Call Option and Put Option. Holders of a call option have the right to buy the underlying asset, while holder of a put option have the right to sell the underlying asset.
- How many exercise types?
There are 2 exercise types; they are American Option and European Option. American Option can be exercised on or before the maturity date and European Option can only be exercised on the maturity date.
- What is Premium?
Premium is the compensation paid by the Buyer to the Seller for the right of exercising the Option Contract on the pre-determined date.
(Buyers have the right NOT to exercise the contract, while Sellers have the obligations to fulfill the agreement.)
- How to calculate the Premium?
Option premium is affected by many key factors, including the price of the underlying asset, the option exercise price, time to maturity, interest rate, the volatility and dividend.
- What is Intrinsic Value?
Intrinsic Value is defined as the value that can be obtained from exercising the option contract, only In-the-Money Option Contracts have Intrinsic Value.
- How the time to maturity affect the option premium?
The relationship between option premium and time to maturity is positive: all else equal, longer time to maturity option have higher option premium, vice versa.
- What is In-the-Money Option?
A call option is said to be in-the-money when the value of the underlying asset is greater than the option exercise price.
A put option is said to be in-the-money when the value of the underlying asset is lower than the option exercise price.
- What is Out-the-Money Option?
A call option is said to be out-the-money when the value of the underlying asset is lower than the option exercise price.
A put option is said to be out-the-money when the value of the underlying asset is greater than the option exercise price.
- What is At-the-Money Option?
At-the-Money Call/Put options means the option whose exercise price is the same as the market price of the underlying asset.
- Does Hong Kong Option Market have Pre-Opening Period?
No.
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