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HK Multi-Leg Options Trade Fees

1. Fees

HK multi-leg options orders consist of either two options or an option paired with the underlying stock or ETF. Each leg is charged separately and subject to the minimum fee. The total fee is calculated by summing up the fees for each leg.

 

2. Examples

Example 1:

In constructing a long covered call, assume an investor purchases 1,000 shares of the underlying stock at HK$9 per share. Simultaneously, they sell 1 call option on that stock at HK$3. Commissions and transaction fees for both the stock and the option are calculated separately but are both subject to minimum fees.

• Commission: For the 1,000 shares, the fee amounts to 0.03% x 1,000 x HK$9 = HK$2.7. Since the minimum commission for a stock order is HK$3, the commission for these shares would be HK$3 (this is waived during commission-free periods). For the call option, the commission is 0.2% x 1 x HK$3 = HK$0.006. With a minimum commission of HK$3 for an option order, the charge is HK$3. In total, the commissions equal HK$6 (or HK$3 during commission-free periods).

• Platform Fees: The fee for the 1,000 shares stands at HK$15. An identical fee of HK$15 is charged for the option. Combined, the platform fees come to HK$30.

 

Example 2:

For a long straddle, consider an investor purchasing both a call and a put option on a specific stock, both priced at HK$6.5, with the same strike price and expiration. Commissions and fees for both options are calculated independently, each subject to its minimum rates.

• Commission: The commission for the call option is 0.2% x 1 x HK$6.5 = HK$0.013. Given the HK$3 minimum for option orders, the commission is HK$3. Similarly, the put option has a commission of HK$3, leading to a combined total of HK$6.

• Platform Fees: Both the call and put options have a fee of HK$15 each, totaling HK$30.

 

Please see our Fee Schedule for more information on HK stocks and options fees.   

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