2. What are the supported order types for options?
3. What's the trading unit for options?
4. What are the trading hours for options?
5. How to file error trade claims for stock options?
6. Where can I check the margin sheet for stock options?
9. If the underlying stock is suspended for trading, how stock options trading is affected?
Trading options is similar to trading stocks. You can place an order after entering the quantity and price.
HK equity options trading supports Limit Order, Stop Limit Order, Limit if Touched Order, Trailing Stop Limit Order.
Options are traded in units of contracts.
For example, there is an option contract TCH 190829 140.00C. Its quoted price is 16.7 HKD and each contract corresponds to 100 Tencent shares.
Therefore, the price (premium) of this contract is 16.7 * 100 = 1670 HKD.
Upon exercise, you will receive 100 shares of Tencent.
Trading hours for the options are 9:30-12:00 and 13:00-16:00 China Standard Time.
Note: Options do not support pre-and post-market trading.
While trading Hong Kong stock options, if you believe that the final transaction price of your order is significantly different from the actual price, making the situation a possible case for a trade error, you can contact our customer service team as soon as possible, and we will assist you in filing an error trade claim to the Hong Kong Stock Exchange for a total charge of 5,000 HKD in related fees.
According to the relevant regulations of the Hong Kong Stock Exchange, please note the following items for error trade claims:
● The claim should be filed within 30 minutes of the trade execution
● Both parties of the transaction must agree that the transaction is an error in order for the HKEX to cancel the trade
● If the parties disagree or cannot be reached, the decision will be made by a special Error Trade Review Panel, comprised of members of HKEX's staff
● The exchange shall have absolute discretion in determining the Reference Price used and the panel's decisions are final
● Fees are not refundable, regardless of the final decision on the claim
Customers who sell options (short) are required to maintain the margin level required by HKEx on a daily basis.
Specific requirements can be found at the website.
Note: FUTU reserves the right to increase the margin requirements according to its own risk control needs.
Before trading day (08:55 a.m.), we will update your option value with yesterday's settlement price published by HKEx.
After the market opens, if there is any transaction, the latest traded price will be used to calculate the market value of the option; if there is no transaction, the market value of the option will remain at the same price until the next trading day when it will be updated again to the new settlement price of HKEx.
Whether you refer to the most recent traded price or yesterday's settlement price, the market price used to calculate the market value of the option is a reference value that reflects the value of the option and does not change the size of your option position, nor does it affect your assets or trading.
It can reflect the true value of options that have not been traded for a long period of time, allowing investors to avoid making wrong investment decisions due to large deviations from the market price and true value.
If you hold options on Hong Kong shares, the problem could be caused by the inconsistency of the reference benchmark and does not affect your actual assets.
(1) In calculating today's P/L for options, yesterday's market value in the formula uses the published option settlement price.
(2) And it was calculated using the closing price from yesterday's close to this morning's open.
If the underlying stock is suspended for trading, the related HK stock options also will be suspended for trading as well. Stock settlement still follows the normal settlement cycle during the suspension period. The HK stock options related to the underlying stock will be handled as follows.
If the underlying stock is still suspended for trading on the option expiration date, the long position of the HK stock options will use the last closing price of the underlying stock quoted on the Exchange as the option settlement price. Clients holding long positions of HK stock options can choose whether to exercise their options (except the below circumstances). Otherwise, the options will be exercised or collapsed on the option expiration date in accordance with the exchange rules.
If a client holding long put positions of HK stock options but without sufficient stocks for settlement during the period of trade suspension period or at option expiration date, regardless whether the options are In-The-Money or Out-of-The-Money, he/she is not allowed to exercise his/her options and the options will be defaulted to be collapsed.
If a client holding short call positions of HK stock options is required by the counterparty to exercise options for assignment but with sufficient stocks for settlement during the period of trade suspension period or at option expiration date, the relevant client needs to deliver the relevant stocks on the second settlement day immediately following the day on which the HK stock options contracts are exercised. Otherwise, the relevant client does not holding sufficient stocks for settlement during the period of trade suspension period or at option expiration date, the relevant client can complete settlement through stock transfer-in, or the settlement will be handled according to HKEx’s arrangement.
For operations and impacts during the suspension period of the underlying stock on HK stock options, please refer to the exchange's FAQ.