Fulbright Financial Group

HK Futures

Global Futures

What are futures and options

What are futures and options | Brief introduction of index futures and index options | Products

Futures is a contract to buy or sell a specified commodity of specified quantity at a specified date in the future, at a determined price.

Options refer to the rights in a time limit period. Options holder has the right to buy (call option) or sell (put option) an asset that the options represents at pre-determined exercise price. Buyers of call options have the right to buy the assets from the options seller according to the terms of the contract. Buyers of put options have the right to sell the assets to the options seller according to the terms of the contract.

Brief introduction of index futures and index options

Fulbright Futures Ltd is the member of Hong Kong Futures Exchange, providing trading services for all kinds of index futures and options products. Listed below are our new index futures and options trading services: futures and options for Hang Seng Index, Mini-Hang Seng Index, H Share Index and FTSE/ Xinhua China 25 Index.

Advantages of Futures Trading:

Low transaction cost
Futures transaction cost is lower than stock transaction cost.
Opportunities in making profit
Both rises or falls in futures price enable investors to capture profit.
Hedge for related assets
Trading futures protects investors' portfolio value and lowers risk by providing a chance for hedging related assets.
Leverage effect
Investors are only required to pay margin in trading futures. Margin is only a small portion of the amount required for trading futures.

Products

Hang Seng Index Futures and Options
Hang Seng Index is formulated , issued and managed by the subsidiary of Hang Seng Bank, Hang Seng Index Services Ltd. It comprises more than 40 different composite stocks in different categories, and is calculated using the method of weighted capital market value. Besides the standard Hang Seng Index Future, Mini-Hang Seng Index Futures is also available for trading.

H share Index Futures and Options
H share index is set up to reflect the trend of the values of H share. Also formulated by Hang Seng Index Services Ltd, calculation is based on the weighted market prices of the composite stocks. As of September, 2010, the index comprises more than 40 leading H shares.

Characteristics of Index Futures

Related index	Hang Seng Index Futures	Mini-Hang Seng Index Futures	H share Index Futures	Mini-H share Index Futures	HSI Volatility Index Futures
Currency	HKD
Lowest price volatility	one index point
Highest price volatility	No
Contract multiplier	$50 per index point	$10 per index point	$50 per index point	$10 per index point	$50 per index point
Contract Month	Current month, next month and two coming months
Pre opening hours	8:45 - 9:15 am; 1:00 - 1:30 pm			Nil
Trading hours	9:15 am to 12:00pm; 1:30pm to 4:15pm				9:30 am to 12:00pm; 1:30pm to 4:15pm
Closing time for last trading day	4:15 pm
Trading method	Automated electronic transaction
Last clearing date	The first working day after the last trading day
Calculation method	Cash
Last trading day	Second working day of the month

Related index	IBOVESPA Futures	MICEX Index Futures	Sensex Index Futures	FTSE/JSE Top40 Futures
Currency	HKD
Lowest price volatility	five index point	0.05 index point	one index point	one index point
Highest price volatility	10% of daily settlement price of the nearest contract month determined by BVMF on the previous Business Day	No	No	No
Contract multiplier	$5 per index point	$100 per index point	$10 per index point	$10 per index point
Contract Month	Two nearest even-numbered calendar months	Two nearest quarter calendar months	Spot Month and the next calendar month	Two nearest quarter calendar months
Pre opening hours	Not applicable
Trading hours	9:15 am to 4:15pm
Closing time for last trading day	9:15 am to 4:15pm
Trading method	Automated electronic transaction
Last clearing date	The second working day after the last trading day
Calculation method	Cash
Last trading day	The Last Trading Day determined by BVMF (i.e. usually the Wednesday closest to the 15th calendar day of the Contract Month)	"The Last Trading Day determined by MICEX-RTS (i.e. usually the 15th calendar day of the Contract Month)"	The Last Trading Day determined by BSE (i.e. usually the last Thursday of the Contract Month)	The Last Trading Day determined by JSE (i.e. usually the third Thursday of the Contract Month)
Last trading day	If it is not a Hong Kong Business Day, the Last Trading Day shall be the immediately preceding Hong Kong Business Day.