(The Chinese version is for reference only, the English version prevails)

HK Futures

 

Introduction

Futures contracts are financial derivatives which are agreements to buy or sell a given quantity of the underlying assets at a predetermined price on a specified date in the future. Underlying assets can be stock, market index, currency or commodity.

Investors can trade futures on the HKEx. Investors can buy or sell them with a margin deposit, which only partly covers the value of the contract. Going into leverage can increase the size of investors’ gain or loss. Trading futures can be risky as a broker can make a margin call. This means Investors must put in more cash or securities to cover the shortfall of investors’ margin deposit in case the price of the underlying asset moves against investors’ view. The loss could be much more than investors’ margin deposit.

Please note that not all futures contracts are linked to a product that can be physically delivered. A stock index futures contract, for example, is generally settled for cash.

 

Features of Futures:

1) Margin Trading

Futures contracts use margin trading, and leverage allows investors to get greater potential returns.

2) Settlement of Futures

Futures products can be divided into physical delivery or cash settlement. However, please note that some physical delivery products will be forced to close position before last trading day. Please contact us for details.

3) The Expiration Date of the Futures

Futures contracts have established last trading days, notice days and settlement dates, and will be suspended after expiration.

4) Directional Trading

Investors can achieve "short selling" transactions and make profit in bear market through Futures products.

5) 24 Hours Trading

Seven major futures markets cover the globe, allowing Investors to seize investment opportunities 24 hours a day.

6) Implement Different Trading Strategies

Futures are not only a single investment product, but also a flexible investment instrument with investors’ original assets portfolio to achieve different trading strategies such as speculative, hedging or arbitrage.

 

 

Disclaimer

The Information is provided for information only and should not be used as a basis for making business decisions or otherwise be regarded as investment advice or a recommendation to buy or sell or otherwise invest in any particular investment or securities.