Index Futures

Hotline: (852) 3890 1688

Introduction

There are various kinds of future products available for trading in the market such as commodities, agricultural products and currencies, and the Hang Seng Index Futures and H-shares Index Futures in Hong Kong are among the best-known financial market index futures by the investors in Hong Kong. Generally speaking, investors can use the index futures as a means to hedge their existing portfolio, or to profit by making directional investments after performing analyses of market fluctuations.


Our company currently provides the following index futures for trading:

● Hang Seng Index Futures
● Mini Hang Seng Index Futures
● H-shares Index Futures
● Mini H-shares Index Futures
● HIS Volatility Index
● BRICS Futures (Brazil, Russia, India, South Africa)

 


 

Contract specifications

Please refer to the following HKEx website link
http://www.hkex.com.hk/eng/prod/drprod/dmproducts.htm

 


 
Margin requirement


Trading index futures requires to post the initial margin that adjusts according to market price fluctuations. Customers trading futures have to ensure there are sufficient balance to meet the initial margin requirements set by the exchange before opening new positions. Maintenance margin is 80% of the initial margin. If customers incur floating losses as they open positions and their account margin is below the maintenance margin, they must immediately deposit funds so that the margin is restored back to initial level or above, otherwise the securities brokers have the right to close the open positions on behalf of the clients without prior notice. The margin requirements of account is determined by the overall risk of the portfolio with different futures and options contracts using the calculation method called the Standard Portfolio Analysis of Risk (SPAN) by Hong Kong Exchanges and Clearing Limited. This method of calculation eliminates part of the margin requirements as a result of the hedging positions, so customers holding different combinations of futures and options contracts may be required to post more or less for the overall margin. Customers must therefore be aware whether their account balance can sufficiently meet the initial margin requirements set by the exchange.

 

 Hotline: 

(852) 3890 1688