1. Option paper trading involves two markets: the Hong Kong stock market and the US stock market. By tapping the 「Create」 button, you can open a virtual account for each market and will have an initial asset of 1 million HKD and 1 million USD in each account, respectively.
2. The product types you can trade in paper trading for the Hong Kong and the US stock markets are limited to stock option products listed on the exchanges.
3. Hong Kong stock market trading hours: 9:30 AM-12:00 PM, 1:00 PM-4:00 PM (China Standard Time); US stock market trading hours: 9:30 AM-4:00 PM (Eastern Time).
4. Hong Kong stock option exercise rules: Exercise is not supported. On the expiration date, if the intrinsic value of an option is less than 1.5% of its exercise price, the option’s value will be 0; otherwise the option will be settled in cash.
5. US stock option exercise rules: Exercise is not supported. On the expiration date, if the intrinsic value of an option is less than 0.01 USD, the option’s value will be 0; otherwise the option will be settled in cash.
6. Option trading rules: Only limit orders are supported; positions in in-the-money options must be closed out before the expiration date.
7. Option settlement rules: The paper trading system has simplified the settlement rules. Proceeds from selling option contracts settle the same day (T+0).
8. The paper trading system is not necessarily consistent with the real stock market. In case of any inconsistency, data in the paper trading system shall prevail.
9. If you hold stock options of a listed company which is delisted for any reason, no longer trade, you may no longer trade such options in later trading days, and the system will return the virtual funds to your virtual account at the last closing price.
10. Hong Kong stock option transaction fee: Commission: 0.2% * transaction amount, minimum 3 HKD per order; Platform fee: 15 HKD per order; Trading tariff: 3 HKD per contract per side.
11. US stock option transaction fee: Commission: 0.65 USD per contract, minimum 1.99 USD per order; Platform fee: 0.3 USD per contract; SEC regulatory fee: 0.0000229 * transaction amount, minimum 0.01 USD per order (sells only); Trading activity fee: $0.00279 per contract, minimum $0.01/trade (sells only); Options regulatory fee: 0.02915 USD per contract.
12. Paper trading adopts the rules of order matching. The highest bid (best bid) and the lowest ask (best ask) are the best prices for matching. A buy order at a price higher than the best ask or a sell order at a price lower than the best bid satisfies the matching conditions and will be automatically queued for execution.
13. Transaction fees deducted in paper trading system are not real expenses. The paper trading system is free of charge, so please feel free to use it.