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1. |
What is margin? |
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In the futures markets, both buyers and sellers are required to
deposit an initial margin, which usually amounts to anticipated
daily price risk to cover market price fluctuations. At the end
of each trading day, investors' accounts are adjusted according
to the value of each contract or marked to market. If the initial
margin deposit falls below a stipulated level, namely the maintenance
margin, after marking-to-market, a margin call is issued and the
investor must deposit additional funds to restore the account to
the initial margin level.
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2. |
What is Initial Margin? |
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This is the minimum amount of margin in good fund that a
client must deposit prior to opening a position. The amount
of Initial Margin is defined by the SPAN calculation from
HKEX or by our company.
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3. |
What is Maintenance Margin? |
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Maintenance Margin is 80% of Initial Margin.
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4. |
What is a margin call? |
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If the total equity of your account falls below the Maintenance
Margin level (which is 80% of Initial Margin), the available
balance in your portfolio will show a debit balance. A margin
call to bring the equity back to the Initial Margin level will
be required. You are then required to deposit sufficient funds
or liquidate your position to satisfy the margin call.
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5. |
Do I need to pay a deposit before I trade? |
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Before trading futures contracts online, you should ensure
that 100% of the initial margin has been deposited in your account.
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6. |
Can I open a position by depositing a cheque? |
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Yes, but the cheque deposited must be cleared before opening a position.
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7. |
What is the maximum price spread
for submitting an order via your trading system? |
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Futures order
Within +/- 8 % of the market price
Options order
Hang Seng Index Options: +/- 1200 points
H-shares Index Options: +/- 1300 points
Note: the actual price deviation varies by cases
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8. |
How can I retrieve my margin deposit if my position is closed out? |
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When closing out the position in your account, the initial margin
and the trade price difference will be reflected in your account.
You can withdraw the funds on next working day.
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9. |
What types of orders can I submit? |
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| Order types for HK Index Futures: |
Rest-of-Day Order
Fill-or-Kill Order
Fill-and-Kill Order
Auction Order
Stop-loss Order
Market Order
Up Trigger Order
Down Trigger Order
Up / Down Trigger Order |
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| Order types for HK Futures Option: |
Rest-of-Day Order
Fill-or-Kill Order
Fill-and-Kill Order
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10. |
Types of Orders |
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Rest-Of-Day Order |
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"Rest-of-Day" order is a limit order with specified price and quantity.
If the order is not immediately matched, it will stay as a queued order
until the market closes for the day. |
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Fill-OR-Kill Order |
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"Fill or Kill" order is a limit order that has to immediately and
exactly match the specified price and quantity; otherwise the order will be cancelled. |
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Fill-AND-Kill Order |
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"Fill and Kill" order is a limit order that will be immediately matched
with as many contracts available in the market as possible and the remaining
unmatched quantity will be cancelled. |
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Auction Order |
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An order where a bid or offer price is not specified and is
entered into the Hong Kong Automated Trading System (HKATS) during
the pre-market opening period for execution at the *Calculated Opening Price (COP).
When investors enter an auction order, they are prepared to buy
or sell at the COP. Depending on market conditions, not all auction
orders may be matched on market opening. As a result, unmatched
auction orders will be converted to limit orders at *COP, or the
best bid price or the best ask price after the market reopens.
Note: A COP (Calculated Opening Price) is calculated
during the pre-market opening period and serves as the market opening
price for the corresponding product. At the moment, it only applies to
Hang Seng Index and Mini-Hang Seng Index futures products. A COP will be
calculated only if the highest bid price of the Limit Orders entered into
HKATS is greater than or equal to the lowest ask price of the Limit Orders.
If more than one price satisfies this criterion, the COP will be calculated
according to the established formula set forth in the Rule 4.8.3 of Trading
Procedures for Stock Index Futures and Stock Index Options Traded on the
Automated Trading System of the Exchange (HKATS). For more information,
please visit HKEx website www.hkex.com.hk.
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Stop-Loss Order |
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It is a pending order with a touch price and a specified price.
When the touch price is reached, an order with the specified price will
be sent to HKATS.
The primary function of a stop-loss order is to restrict the losses of
investors. When the market price drops to a level pre-set by the investor,
the investor may place a Stop-loss sell order to limit his loss on a long
position. On the other hand, if the investor holds a short position, he
may place a Stop-loss buy order to limit his loss when the market price
increases to a level pre-set by him. |
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Market Order |
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It is an order that will be sent to HKATS where the order price is the market price. (Applicable to Spot month only)
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Up Trigger Order |
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You can choose either a limit order or a market price order.
An Up Trigger Limit Order is a pending order with a touch price
and a specified price. The touch price must be higher than the last done market
price. When the touch price is reached, an order with the specified price will
be sent to HKATS.
An Up Trigger Market Order is a pending order with a touch price
whereas the touch price must be higher than the last done market price.
When the touch price is reached, an order with a market price will be sent to HKATS.
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Down Trigger Order |
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You can choose either a limit order or a market price order.
A Down Trigger Limit Order is a pending order with a touch price
and a specified price. The touch price must be lower than the last done market
price. When the touch price is reached, an order with the specified price
will be sent to HKATS.
A Down Trigger Market Order is a pending order with a touch price whereas
the touch price must be lower than the last done market price. When the
touch price is reached, an order with a market price will be sent to HKATS.
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UP / Down Trigger Order |
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You can choose either a limit order or a market price order.
An Up / Down Trigger Limit Order is a pending order with both Up
and Down touch prices and up and down specified prices. When the touch price
of either side is reached, an order with the specified price
will be sent to HKATS. The other side of the order will be cancelled automatically.
An Up / Down Trigger Market Order is a pending order with both up
and down touch prices. When the touch price of either side is reached,
an order with a market price will be sent
to HKATS. The other side of the order will be cancelled automatically.
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11. |
Trading hour |
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| Contract |
Trading Session |
Trading Hours |
Trading Hours on Last Trading Day (Spot Month Contract) |
Pre Market Opening Period |
Hang Seng Index Futures
Mini-Hang Seng Index Futures
H-shares Index Futures |
Morning |
09:45 - 12:30 |
09:45 - 12:30 |
09:15 - 09:45 |
| Afternoon |
14:30 - 16:15 |
14:30 - 16:00 |
14:00 - 14:30 |
Mini H-shares Index Futures
Hang Seng Index Option
Mini-Hang Seng Index Option
H-shares Index Option
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Morning |
09:45 - 12:30 |
09:45 - 12:30 |
N/A |
| Afternoon |
14:30 - 16:15 |
14:30 - 16:00 |
N/A |
Remarks:
- Auction Orders can only be submitted during the Pre Market Opening Period.
- Any order submitted after market close or during lunch hour section will be rejected by the HK Exchange.
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12. |
How can I know the margin requirement for HK Futures Option? |
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You can refer to the HK Exchange website www.hkex.com.hk by clicking "Trading Information" > "Derivatives Market" > "Margin Table" > "Futures & Index Options" > "Client Margin Estimate Reference Table" |
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13. |
How long do my instructions stay alive for? |
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Unless you cancel your instructions, your orders will stay alive
until the end of the trading day. If your orders are not filled, they
will expire after market close. |
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14. |
How can I place orders? |
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You can place your orders through our eFutures Trading
System at www.SHKonline.com,
or call our Dealing Hotline at (852) 2822 5006. |
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15. |
What can I do if I want to place an order
but do not have access to a computer? |
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You can call our Dealing Hotline at (852) 2822 5006 to place your orders. |
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16. |
How do I cancel an order? |
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You can go to the Order Status tab in the trade platform where
you can double click on the order you want to cancel. The order
details will pop up where you can cancel the order by clicking on the "Delete" button. |
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17. |
How do I amend an order? |
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You can go to the Order Status tab in the trade platform
where you can double click on the order you want to amend.
The order details will pop up where you can amend the order
by clicking on the "Modify" button. You can amend the price
or quantity of the order.
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18. |
If I amend an order, will the order
be re-queued in HKATS? |
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You can amend an order using any of the 3 ways:
- Reduce the quantity
- Change the price
- Increase the quantity
The order will not be re-queued if you only reduce the quantity.
However, by changing the price or increase the quantity of an order,
you will be canceling the original order. The amended order will
be treated as a new order and sent to HKATS to be re-queued. To
avoid re-queuing, it is suggested that you increase the quantity
by submitting a new order instead of amending the original order.
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19. |
How will I be notified of trade execution? |
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Once your order is executed, the order status will be updated
in the Trade Status window in the trade platform. You will also
receive a confirmation by mail after your trade is executed.
Note:
All of your trading and portfolio will be automatically updated on real time basis.
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20. |
How can I check my portfolio? |
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You can go to the trade platform and click on the "PORTFOLIO"
tab to view your updated position, cash balance, margin requirement,
floating profit and loss, etc.
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21. |
Can I check my trade history for the previous days? |
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The Trade history in the trade platform provides you with
trade records covering the last three trade days, giving you
expanded access to orders history
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22. |
How to close out an open position for futures contract?  |
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To close out an open position for futures contract, login Futures Trading Platform and go to Portfolio. Click on the "close-out" link beside the contract (or double click on the contract), order details will be filled in automactically (price will be filled with the best price of the opposite open contract at the moment you click on the link). Verify the order details, and then click on Buy or Sell to confirm the order. |
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HK Futures
