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1. |
What is premium? |
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The price at which an option trades is generally called the "premium", which is the amount of fund that an option buyer pay to the option seller.
The premium is determined by market forces. |
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2. |
What is margin? |
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The option sellers are required to deposit a margin, to anticipate daily price risk to cover market price fluctuations. |
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3. |
Do I need to pay a deposit before I trade? |
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Before trading stock option contracts online, you should ensure that 100% of the margin has been deposited in your account. |
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4. |
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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5. |
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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6. |
Which stock option contracts are offered by SHK Stock Options trading?  |
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| Stock Code |
HKATS Code |
Underlying Stocks |
Contract Size (shares) |
Options Tier |
| 1 |
CKH |
CHEUNG KONG (HLDGS) LTD |
1,000 |
1 |
| 2 |
CLP |
CLP HOLDINGS LIMITED |
500 |
1 |
| 3 |
HKG |
THE HONG KONG AND CHINA GAS COMPANY LIMITED |
1,000 |
2 |
| 4 |
WHL |
The Wharf (Holdings) Limited |
1000 |
1 |
| 5 |
HKB |
HSBC HOLDINGS PLC |
400 |
1 |
| 6 |
HEH |
Hongkong Electric Holdings Limited |
500 |
2 |
| 8 |
PCC |
PCCW Limited |
1000 |
2 |
| 11 |
HSB |
HANG SENG BANK LTD |
100 |
2 |
| 12 |
HLD |
Henderson Land Development Company Limited |
1000 |
1 |
| 13 |
HWL |
HUTCHISON WHAMPOA LTD |
1,000 |
1 |
| 16 |
SHK |
SUN HUNG KAI PPT LTD |
1,000 |
1 |
| 17 |
NWD |
NEW WORLD DEV CO LTD |
1,000 |
1 |
| 19 |
SWA |
SWIRE PACIFIC LIMITED 'A' |
500 |
1 |
| 23 |
BEA |
THE BANK OF EAST ASIA, LIMITED |
200 |
2 |
| 66 |
MTR |
MTR CORPORATION LTD |
500 |
2 |
| 179 |
JSE |
Johnson Electric Holdings Limited |
500 |
2 |
| 203 |
DWM |
Denway Motors Limited |
2000 |
2 |
| 267 |
CIT |
CITIC Pacific Limited |
1000 |
1 |
| 293 |
CPA |
Cathay Pacific Airways Limited |
1000 |
1 |
| 330 |
ESP |
ESPRIT HOLDINGS LIMITED |
100 |
2 |
| 358 |
JXC |
JIANGXI COPPER CO. LTD |
1,000 |
2 |
| 386 |
CPC |
CHINA PETROL & CHEM COR |
2,000 |
2 |
| 388 |
HEX |
HK EXCHANGES & CLEARING |
100 |
1 |
| 390 |
CRG |
China Railway Group Limited |
1000 |
2 |
| 494 |
LIF |
Li & Fung Limited |
2000 |
1 |
| 728 |
CTC |
CHINA TELECOM CORPORTION LTD |
2,000 |
2 |
| 762 |
CHU |
CHINA UNICOM LTD |
2,000 |
2 |
| 857 |
PEC |
PETROCHINA CO LTD |
2,000 |
2 |
| 883 |
CNC |
CNOOC LTD |
1,000 |
2 |
| 902 |
HNP |
Huaneng Power International, Inc. |
2000 |
2 |
| 939 |
CCB |
CHINA CONSTRUCT BANK CO |
1,000 |
2 |
| 941 |
CHT |
CHINA MOBILE (HK) LTD |
500 |
1 |
| 998 |
CTB |
China CITIC Bank Corporation Limited |
1000 |
2 |
| 1038 |
CKI |
CHEUNG KONG INFRASTRUCTURE HOLDINGS LIMITED |
1,000 |
1 |
| 1088 |
CSE |
CHINA SHENHUA ENERGY COMPANY LIMITED |
500 |
2 |
| 1186 |
CRC |
CHINA RAILWAY CONSTRUCTION CORPORATION LIMITED |
500 |
2 |
| 1398 |
ICB |
INDUSTRIAL AND COMMERCIAL BANK OF CHINA LTD |
1,000 |
2 |
| 1800 |
CCC |
CHINA COMMUNICATIONS CONSTRUCTION CO LTD |
1,000 |
2 |
| 1898 |
CCE |
CHINA COAL ENERGY CO LTD |
1,000 |
2 |
| 2038 |
FIH |
Foxconn International Holdings Limited |
1000 |
1 |
| 2318 |
PAI |
PING AN INSURANCE LTD |
500 |
2 |
| 2328 |
PIC |
PICC PROPERTY AND CASUALTY CO LTD |
2,000 |
2 |
| 2388 |
BOC |
BOC HK (HLDGS) LTD |
500 |
2 |
| 2600 |
ALC |
ALUMINUM CORPORATION OF CHINA LTD |
2,000 |
2 |
| 2628 |
CLI |
CHINA LIFE INSURANCE |
1,000 |
2 |
| 2800 |
TRF |
Tracker Fund of Hong Kong |
500 |
2 |
| 3328 |
BCM |
BANK OF COMM CO LTD |
1,000 |
2 |
| 3968 |
CMB |
CHINA MERCHANTS BANK CO., LTD. |
500 |
2 |
| 3988 |
BCL |
BANK OF CHINA LIMITED |
1,000 |
2 |
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7. |
What types of orders can I submit? |
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Order types for Stock Options:
- Rest-of-Day Order
"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.
- Fill-or-Kill Order
"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.
- Fill-and-Kill Order
"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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8. |
What are the trading calendar and trading hours of Stock Options? |
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| Trading Session |
Trading Hours |
| Morning |
10:00 - 12:30 |
| Afternoon |
14:30 - 16:00 |
For holiday schedule and options expiry dates, please refer to the Trading Calendar and Trading Hours of Stock Options section in HKEx website.
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9. |
How can I know the margin requirement for Stock Options? |
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The amount of margin requirement of individual client portfolio is calculated in real-time basis by using industrial standard - SPAN and varies under different conditions. You may refer to Margin Table of Stock Options section in HKEx website for an estimated margin requirement for each stock option contract. |
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10. |
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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11. |
How can I place orders? |
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You can place your orders through
- our e-Stock Options trading platform at www.SHKonline.com, or
- call our Stock Options Dealing Hotline at (852) 3920 1621
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12. |
What can I do if I want to place an order but do not have access to a computer or the Internet? |
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You can call our Stock Options Dealing Hotline at (852) 3920 1621 to place your orders. |
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13. |
How do I amend or cancel an order? |
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You can go to the Trade Status tab in the trading platform where you can double click on the order you want to amend or cancel. The order details will pop up where you can amend or cancel the order by clicking on the "Modify" or "Delete" button. |
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14. |
Why the order is re-queued after amending? |
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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.
The order will not be re-queued only if you reduce the quantity.
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15. |
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 tab in the trading platform. We will send out a daily statement by post to you in the morning of the next trade day after the trade execution.
Note: All of your trading and portfolio will be automatically updated on real time basis. |
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16. |
How can I check my portfolio, cash balance or profit and loss? |
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You can go to the trading platform and click on the Portfolio tab to view your
- updated position
- cash balance
- margin requirement
- floating profit and loss
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17. |
How to exercise an option contract? |
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You can go to the trading platform and click on the Portfolio tab, and click on the Exercise button besides the option contract. You will then receive a confirmation by email. |
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18. |
What is the cut-off time to submit an exercise instruction? |
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The cut-off time to submit an exercise instruction is 4:20 pm of the each trading day before the option expiry day. |
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19. |
How can I know the assignment of my short position? |
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Your short position may be assigned after the market close. SHKOnline will notify you by phone or email on next day. |
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20. |
What should I do if my short call position is assigned? |
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You have to arrange the delivery of the underlying stock in your securities account. If no delivery instruction is received from you before 12:00 noon on the day we inform you, SHKOnline will act on your behalf to buy the underlying stock in the market at current price for settlement. |
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21. |
What happen if I have open long position on the expiry day? |
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If you do not provide an exercise instruction to us before the expiry day, your open long position will either expire or the Options System will automatically generate an exercise instruction in respect of your open long position which are in-the-money or above the percentage prescribed by SEOCH from time to time. |
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22. |
Can I use stock as collateral to cover my short call contract? |
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Yes, you can use the underlying stock as collateral to cover your related short call position. This can be fulfilled by depositing the relevant underlying stock in your e-Stock Option account instead of cash as margin deposit.
When using stock as collateral please note that:
- Stock collateral is for short call position(s) only, margin upfront is required for all other short position(s)
- Kindly indicate your preference in using stock as collateral to our dealers before placing an order
- All stock used as collateral will remain in your e-Stock Option account after the position is closed out or at expiry. Further instruction from yourself is required should you need to transfer the stock to your HK shares trading account. It normally takes 2 working days.
- For physical shares deposit, transfer to e-Stock Option account for stock collateral will only be allowed after the 10th working days since deposit.
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23. |
How do I transfer stocks within my account in the SHK group in order to arrange stock as collateral for covered call options? |
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Instructions to transfer stock as collateral should be given before 12:00 pm. Stock transfer instruction given after 12:00 pm will be processed on the next working day.
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Stock Options
