What is the trading and settlement mechanism of futures & futures options

1. Futures

1.1 Transaction currency: HKD, USD, CNH, JPY

1.2 Transaction method: You don’t really need to pay the order amount to open a position. You can do so as long as your maximum buying power can cover the margin.

1.3 Order type:

● Hong Kong futures: You can place limit orders, market orders, at-auction market orders, stop limit orders, stop market orders, limit if touched orders, market if touched orders, trailing stop limit orders, and trailing stop market orders. In particular, at-auction market orders need to be placed during the pre-market opening period.

● US futures: You can place limit orders, market orders, stop limit orders, stop market orders, limit if touched orders, market if touched orders, trailing stop limit order, and trailing stop market orders.

● Singapore futures and Japan futures: You can place limit orders, market orders, stop limit orders, stop market orders, limit if touched orders, market if touched orders, trailing stop limit order, and trailing stop market orders.

1.4 Maximum contract size: A single order may contain up to 100 contracts.

1.5 Closing principle: first-opened first-closed. It means positions opened first are closed first.

1.6 Settlement mechanism:

● Cash settlement: Futures contracts that are still open after the last trading day will be settled without any special operation.

● Physical delivery: Futu does not support physical delivery for commodity futures, and you need to close your positions before the first notice day or the last trading day.


2. Hong Kong Futures Options

2.1 Transaction currency: HKD

2.2 Transaction method: You don’t really need to pay the order amount to open a position. You can do so as long as your maximum buying power can cover the margin.

2.3 Order type: You can place limit orders, stop limit orders, limit if touched orders, and trailing stop limit orders.

2.4 Style: European

2.5 Settlement method upon exercise: cash settlement

2.6 Settlement on the maturity date:

● If your positions remain open till the last trading day, HKFE Clearing Corporation Limited will automatically exercise all in-the-money call options (i.e. call options with strike prices lower than settlement prices) and all in-the-money put options (i.e. put option with strike prices higher than settlement prices);

● Cash settlement will be made at the 「official settlement price」.