1. Initial assets: $1 million.
2. Product types available in the US stock market: stocks, ETFs, stock options, ETF options, and index options that are listed on the exchanges.
3. US stock market trading hours: 9:30 AM-4:00 PM (Eastern Time).
Daylight Saving Time: 21:30-4:00 (Hong Kong Time)
Standard Time: 22:30-5:00 (Hong Kong Time);
4. Stock and ETF options exercise: If an option's intrinsic value is less than $0.01 at the time of expiration, it is considered to have no value; if the intrinsic value is $0.01 or higher, the option will be settled into stocks.
5. Index options exercise: If an option's intrinsic value is less than $0.01 at the time of expiration, it is considered to have no value; if the intrinsic value is $0.01 or higher, the option will be settled into cash.
6. Multi-leg options: Only covered calls and covered puts are supported.
7. Order types: Only limit orders can be placed for multi-leg options, while other tradable assets are open to the choice of limit or market orders.
8. Settlement rules: In the paper trading system, the settlement rules are simplified, with funds settling on a T+0 basis and fees settled in real time.
9. Margin requirements: For long stock positions, the initial margin is set at 50%, with a maintenance margin of 40%. For short stock positions, an initial margin of 60% is required, along with a 50% maintenance margin. Margin calculations in the paper trading system could vary from that of real market trading. Please refer to the paper trading system for specific margin requirements.
10. Discrepancies may exist between the paper trading system and the live trading system. In case of any inconsistencies, data from the paper trading system shall prevail.
11. Corporate action: The paper trading system accommodates stock splits, reverse splits, and dividend payouts for stock holdings. If a stock is delisted for any reason, trading of that stock will be halted, and the system will return the virtual funds to your virtual account at the last closing price. For options, the system does not accommodate any corporate actions. Affected options will no longer be available for trade until it expires, and your account will be credited with virtual funds at the last closing price.
12. Forced liquidation: The paper trading system will liquidate the positions in your account during the trading session when your net asset value falls below the required maintenance margin.
13. Stock trading fees:
Commission: $0.0049/share, minimum $0.99/order，maximum 0.5% of the transaction amount
Platform fee: $0.005/share, minimum $1/order，maximum 0.5% of the transaction amount
Settlement fee: $0.003/share
Regulatory fee: $0.000008 * transaction amount, minimum $0.01/order (sell orders only)
Trading activity fee: $0.000166/share, minimum $0.01/trade, maximum $8.30/trade (sell orders only)
14. Option trading fees:
Commission: Option Premium>$0.1: $0.65/Contract; Option Premium≤$0.1: $0.15/Contract; minimum $1.99/order
Platform fee: $0.30/contract
SEC regulatory fee: $0.0000229 * transaction amount, minimum $0.01/order (sell orders only)
Trading activity fee: $0.00279/contract, minimum $0.01/order (sell orders only)
Options regulatory fee: $0.02915/contract
15. Margin trading fees: Short selling interest is calculated at an annualized interest rate of 6%, while margin financing interest is calculated at an annualized interest rate of 4.8%, both collected daily after the market closes.
16. Order matching: The paper trading system adopts order book matching rules. It verifies whether the last price falls between the best bid and best ask prices. If the buy order price is higher than the last price or the sell order price is lower than the last price, the system matches the order and adds it to the queue for execution.
17. Trading fees are deducted in the paper trading system. They do not involve any real expenses. No actual costs are incurred.