On Line Trading  

Hang Seng Index Futures And Options

Mini Hang Seng Index Futures And Options

H-shares Index Futures & Options

Stock Futures

Hang Seng Index  (HSI), the benchmark of the Hong Kong stock market, is one of the best known indices in Asia and widely used by fund managers as their performance benchmark. The Hang Seng Index is a market capitalisation-weighted index of the 33 constituent stocks. These stocks account for about 70% of the total market capitalisation of all stocks listed on The Stock Exchange of Hong Kong Ltd. (SEHK). Hang Seng Index as a time-tested benchmark for the Hong Kong equity market and yardstick of portfolio performance.

Hang Seng Index Futures And Options contracts provide investors with a set of effective instruments to manage portfolio risk and to capture index arbitrage opportunities.  These contracts are consistently used by different investors for trading and risk management purposes.

Mini Hang Seng Index Futures And Options contracts inherit the advantages of the larger sized HSI futures & option contracts but are tailored for individuals with limited risk capital. The smaller contract size allows experienced and novice investors alike to participate in the performance of 33 constituent stocks in the index in a gradual scale.

Mini Hang Seng Index Futures And Options are based on Hong Kong's benchmark Hang Seng Index (HSI), which is also the underlying index for the larger sized HSI futures & option contracts. The contract multiplier of the Mini-HSI futures & option contracts are HK$10.00 or one-fifth the size of the HSI futures & option contracts. Same as the HSI futures & option contracts, the settlement method for the mini contracts are cash settled.

H-shares Index Futures & Options underlying index of which is Hang Seng China Enterprises Index (HSCEI).  The HSCEI is a market capitalisation-weighted stock index which is compiled and calculated by HSI Services Ltd.  The HSCEI tracks the performance of major H-shares.  H-shares are Renminbi-denominated shares issued by People's Republic of China (PRC) issuers under PRC law and listed on the Stock Exchange of Hong Kong.

H-shares Index Futures & Options  provide opportunities for long or short strategies.  Besides, investors can use H-shares Index Futures and Options as hedging strategies (to protect the HSCEI portfolios against a declining market) or spreading strategies (to profit from the relative performance of two markets, e.g. HSCEI Vs HSI).

FTSE/Xinhua China 25 Index Futures & Options represents the performance of the shares in the most widely followed 25 Mainland enterprises available to offshore investors, which are traded on the Stock Exchange of Hong Kong Limited (SEHK).  The FXI China 25 is compiled by FTSE/Xinhua Index Limited (FXI), a joint venture between the FTSE Group (FTSE) and Xinhua Financial Network Limited, a wholly-owned subsidiary of Xinhua Finance Limited. 

FTSE/Xinhua China 25 Index Futures & Options MEETING MULTI-PURPOSE TRADING NEEDS - FXI China 25 Futures and Options can be used in combination for a wide range of trading strategies to meet different market scenarios like bullish, bearish, stagnant, or volatile markets.

Stock Futures contract is a commitment to buy or sell the financial exposure equivalent to a specific amount (contract multiplier) of shares of the underlying stock at a predetermined price (contracted price) on a specified future date.

As stock futures contracts are cash settled, there is no physical delivery of shares when the contract expires.

Upon expiry, profits and losses are credited or debited to the account of the contract buyers/sellers in an amount equal to the difference between the contracted price and the final settlement price multiplied by the contract multiplier.

The final settlement price is the average of the midpoints of the best bid and offer prices for the underlying stock as quoted on The Stock Exchange of Hong Kong, taken at five-minute intervals during the last trading day.