FAQ

Trading

Place Orders & Trade Execution

HK Shares & Warrants

HK Shares & Warrants

What methods can I use to place my order?

You can place your order through the following channels:

HK Shares Trading Platform
Click on 'Trading Corner' - 'Trade HK Shares' to open the trading platform.

Dealing Hotline at (852) 2822 5002
If you prefer to talk to our dedicated dealing staff directly, you can also call our Dealing Hotline at (852) 2822 5002. Our professional and experienced dealing staff will handle your call and place your order directly with the HK Exchange.
Note: Phone orders through the Dealing Hotline are subject to a Telephone Charge Provision.

Last Update: 2016-07-08

How soon can I start trading?

After you have activated your account and deposited sufficient fund into your account, you can start trading.

Last Update: 2016-07-08

What is the Cash Account T+2 Settlement Policy?

To enhance your trading flexibility, we have launched a new T+2 settlement policy* that enables cash account traders to invest in the stock market with extra convenience.

To invest in high grade stocks, you need to pay only 30% cash upfront and 50% for medium grade stocks, and then settle the balance on T+2. Please note that full payment is required for low grade stocks. To check stocks grading, please click here (link to margin table).

In addition, you can use your stock portfolio value as 'Purchasing Power' to trade up to 70% of the value of your high grade stocks and up to 50% of your medium grade stocks.

*Selling short is not allowed.

Last Update: 2016-07-08

What is the treatment of odd-lot size orders?

When we receive an order with odd-lot size, we will submit the order to the Hong Kong Stock Exchanges AMS/3 system (AMS/3) for you. As AMS/3 treats odd-lot size orders separate from the board-lot size orders by placing them into the odd-lot market, the time taken for your order to match/complete may be longer than the normal board-lot size transactions.

Normally, the price of odd-lot shares is lower than the board-lot shares, so the odd-lot size orders may not be exectuted through the online trading. To speed up the transaction time, you are advised to check the price from the odd-lot market with our dealer and place your order directly. Our Dealing Hotline is (852) 2822 5002.

Last Update: 2016-07-08

What is the maximum order size?

The maximum order size is 3,000 board lots per order.

Last Update: 2016-07-08

If my cash account has overdue balance on T+2, can I still trade?

You can sell but not buy. You should settle the overdue balance on T+2 (1.5 hours before you trade), otherwise you will lose all of your purchasing power in addition to a P+3% per annum interest charge and a 1% penalty fee on the debit amount until the overdue balance is settled.

Last Update: 2016-07-08

How do I calculate my purchasing power and use it to purchase stock in a cash account?

Your purchasing power is based on 70% or 50% (depending on the grading of the stocks) of your stock portfolios market value, your Segregated Deposit Account balance at Standard Chartered Bank and the pending settlement value.

Your purchasing power is based on 70% or 50% (depending on the grading of the stocks) of your stock portfolios market value, your Segregated Deposit Account balance at Standard Chartered Bank and the pending settlement value. Please refer to the examples below:

Example 1:Your account does not have any stocks or money and you want to buy HSBC at a value of HK$100,000.

Stock to be bought (Grade) Total valuePurchasing PowerAmount to be paid before trading dayAmount to be settled on T+2
HSBC (High - 70%)
HK$100,000
N/AHK$30,000
(HK$100,000 x 30%)
HK$70,000
(HK$100,000 - HK$30,000)

As your account does not have any stocks or money, to buy HSBC at a value of HK$100,000 you need to pay HK$30,000 before the trading day. You may sell the stocks the day after, but you still have to settle HK$70,000 on T+2 because the money from the stocks sold will only be deposited into your account two days later.

If you do not settle the balance, you will lose all of your Purchasing Power in addition to a P+3% per annum interest charge and a 1% penalty fee on the debit amount.



Example 2:Your account has HSBC at a value of HK$100,000. You want to buy Great Eagle at a value of HK$160,000.

Stocks hold (Grade) Total ValueStock to be bought (Grade) Total valuePurchasing PowerAmount to be paid before trading dayAmount to be settled on T+2
HSBC (High - 70%)
HK$100,000
Great Eagle (Med - 50%)
HK$160,000
HK$70,000
(HK$100,000 x 70%)
HK$10,000
(HK$160,000 x 50% - HK$70,000)
HK$150,000
(HK$160,000 - HK$10,000)

As your account has HSBC at a value of HK$100,000, your Purchasing Power is HK$70,000. To buy Great Eagle at a value of HK$160,000 you need to pay HK$10,000 before the trading day and you are required to settle HK$150,000 on T+2.

If you do not settle the balance, you will lose all of your Purchasing Power in addition to a P+3% per annum interest charge and a 1% penalty fee on the debit amount.



Example 3: Your account has HSBC and Great Eagle at a value of HK$100,000 and HK$80,000 accordingly; your Segregated Deposit Account has HK$50,000 cash and you want to buy Cheung Kong at a value of HK$200,000.

Stocks hold (Grade) Total ValueSegregated Deposit A/C BalanceStock to be bought (Grade) Total valuePurchasing PowerAmount to be paid before trading dayAmount to be settled on T+2
HSBC (High - 70%)
HK$100,000
Great Eagle (Med - 50%)
HK$80,000
$50,000Cheung Kong (High - 70%)
HK$200,000
HK$160,000
(HK$100,000 x 70% + HK$80,000 x 50% + HK$50,000)
HK$0
(HK$200,000 x 30% = 60,000; Purchasing power)
HK$150,000
(HK$200,000 - HK$50,000)

As your account has HSBC and Great Eagle at a value of HK$100,000 and HK$80,000 accordingly, together with HK$50,000 at your Segregated Deposit Account, your Purchasing Power is HK$160,000. To buy Cheung Kong at a value of HK$200,000, you dont need to pay any money before you place a trade as your Purchasing Power exceeds the amount required.

However, you should settle HK$150,000 on T+2 or else you will lose all of your Purchasing Power in addition to a P+3% per annum interest charge and a 1% penalty fee on the debit amount.



Example 4:You bought certain amount of HSBC at a value of HK$100,000 on T and the pending settlement value is -HK$20,000. One the same day you want to buy Cheung Kong at a value of HK$200,000.

Stocks hold (Grade) Total ValuePending Settlement Value Stock to be bought (Grade) Total valuePurchasing PowerAmount to be paid before trading dayAmount to be settled on T+2
HSBC (High - 70%)
HK$100,000
-HK$20,000
(to be settled on T+2)
Cheung Kong (High -70%)
HK$200,000
HK$50,000
(HK$100,000 x 70% - HK$20,000)
HK$10,000
(HK$200,000 x 30% - HK$50,000)
HK$210,000
(HK$200,000 - HK$10,000 + HK$20,000)

Together with the pending settlement value -HK$20,000, you need to settle HK$210,000 on T+2 or else you will lose all of your Purchasing Power in addition to a P+3% per annum interest charge and a 1% penalty fee on the debit amount.

However, you should settle HK$150,000 on T+2 or else you will lose all of your Purchasing Power in addition to a P+3% per annum interest charge and a 1% penalty fee on the debit amount.

Note: The purchasing power of medium and low grade stocks will exclude the cheque pending to be cleared.

Last Update: 2016-07-08

HK Shares IPO

Where can I obtain IPO information and application forms?

You can obtain IPO information and application forms from our Customer Service Counter, designated banks or via our website.

Last Update: 2016-07-08

How can I subscribe for an IPO online?

  • Open a trading account with us.
  • Read through the relevant terms and conditions.
  • Complete an IPO application form.
  • Deposit sufficient funds to your account before the cut-off time.

Last Update: 2016-07-08

Stock Options

How can I place stock options orders?

Click on 'Trading Corner' - 'Trade Stock Options' to open the trading platform or call our Stock Options Dealing Hotline at (852) 3920 1621.

Last Update: 2016-07-08

What can I do if I want to place a stock options order but do not have access to a computer or the Internet?

You can call our Stock Options Dealing Hotline at (852) 3920 1621 to place your orders.

Last Update: 2016-07-08

How do I amend or cancel a stock options order?

You can go to the 'Order Status' tab in the trading platform where you can double click on the order you want to amend or cancel. The order details will pop up, allowing you to amend or cancel the order by clicking on the 'Modify' or 'Delete' button.

(Note : Only orders in 'Queue' or 'Pend' status can be amended or cancelled.)

Last Update: 2016-07-08

Why is the stock options order re-queued after amending?

By changing the price or increasing the quantity of an order, you will be cancelling the original order. The amended order will be treated as a new order and sent to HKATS to be re-queued. To avoid re-queuing, it is suggested that you increase the quantity by submitting a new order instead of amending the original order.

The order will not be re-queued if you reduce the quantity.

Last Update: 2016-07-08

How long do my 'Stock Options Trader Pro' instructions remain active for?

Unless you cancel your instructions, your orders will remain active until the end of the trading day. If your orders are not filled, they will expire after market close.

Last Update: 2016-07-08

How do I exercise an option contract?

You can call our stock options dealing hotline at (852) 3920 1621 to exercise your options.

Last Update: 2016-07-08

How am I alerted if my short position is assigned?

Your short position may be assigned after the market closes. SHK Direct will notify you by phone or email on the next day.

Last Update: 2016-07-08

What should I do if my short call position is assigned?

You must arrange the delivery of the underlying stock in your securities account. If no delivery instruction is received from you before 12:00 noon on the day we inform you of the assignment, SHK Direct will act on your behalf to buy the underlying stock in the market at the current price for settlement.

Last Update: 2016-07-08

How does the option buyer exercise a stock option? And what should the option seller do?

The buyer has the right to exercise a stock option. For a call option, the buyer has the right to buy a specific amount of the underlying shares at the strike price. For a put option, the buyer has the right to sell a specific amount of the underlying shares at the strike price.

The option seller should prepare the underlying shares for settlement when the call option is being exercised. If a put option is being exercised, the seller should have enough capital for buying the underlying shares from the option buyer.

Last Update: 2016-07-08

What is the cut-off time to submit a stock option exercise instruction?

The cut-off time to submit an exercise instruction is 4:20pm of each trading day before the option expiry day.

Last Update: 2016-07-08

When investors have bought a stock option contract, how can they close out their position?

They can close out their position in one of the following ways:

  • Sell the contract at the current premium value;
  • Exercise the option contract to deliver or take delivery of the underlying stock;
  • Let the option contract expire.

Last Update: 2016-07-08

What happens if I have an open long position on the expiry day?

If you do not provide an exercise instruction to us before the expiry day, your open long position will either expire or the Options System will automatically generate an exercise instruction in respect of your open long position, which are in-the-money or above the percentage prescribed by SEOCH from time to time.

Last Update: 2016-07-08

How to calculate the amount in 'Account Info'?



Stock Options Trader Pro
Buying Poweri.e. Available balance = Cash Balance - Initial Margin
NAVi.e. Equity = Deposit +/- P/L
Margin Call
I.Margini.e. Initial Margin
M.Margin= I.Margin
M.Level
Max Margin
Period
Cash Balancei.e. Account Balance = Deposit +/- Premium
Transaction Amount
Lockup Amount
Credit Limit
Net Opt Value= Current Price x Contract Size
Total Premium= Trade price x Contract size
Client Status
Ctrl Level
Mgn Class
AE


Example: #1 Cheung Kong 105 Call Option
Price: $1.00 Current Price: $0.50 Last Closing: $0.60
Margin$15,000
Deposit$20,000
Selling the option
NAV$20,000 + $500 = $20,500
P/L($1.00- $0.50) x 1000 = $500
I.Margin$15,000
Cash Balance$20,000 + $1000 = $21,000
Buying the option
NAV$20,000 - $500 = $19,500
P/L($0.50- $1.00) x 1000 = -$500
I.Margin0
Cash Balance$20,000 - $1000 = $19,000

Last Update: 2016-07-08

Futures

What can I do if I want to place a HK futures order but do not have access to a computer?

You can call our Dealing Hotline at (852) 2822 5006 to place your orders.

Last Update: 2016-07-08

What is the maximum price spread for submitting an order via the ' Futures Trader Pro '?

Futures order
Within +/- 8% of the market price

Options order
Hang Seng Index Options: +/- 30 points and +/- 3%

Note: the actual price deviationvaries

Last Update: 2016-07-08

How do I amend a HK futures order?

After you can go to the 'Order Page', another small window will be displayed when right-clicking on the order, which will allow the user to make changes on it. The order details will pop up where you can amend the order by clicking on the 'Change order' button. You can amend the price or quantity of the order.

Last Update: 2016-07-08

How do I cancel a HK futures order?

You can go to the 'Order Page', another small window will be displayed when right-clicking on the order, which allows the user to cancel on it. The order details will pop up where you can cancel the order by clicking on the 'Delete order' button.

Last Update: 2016-07-08

If I amend a HK futures order, will the order be re-queued in HKATS?

You can amend an order using any of the three methods:

  • Reduce the quantity
  • Change the price
  • Increase the quantity

The order will not be re-queued if you reduce the quantity only. However, by changing the price or increasing the quantity of an order, you will be cancelling the original order. The amended order will be treated as a new order and sent to HKATS to be re-queued. To avoid re-queuing, it is suggested that you increase the quantity by submitting a new order instead of amending the original order.

Last Update: 2016-07-08

How do I close out an open position for a futures contract?

To close out an open position for a futures contract, login to our “Futures Trader Pro” and go to “Position Page”. Click on the contract and “Close-out” button, order details will be filled in automatically (the price will be filled with the best price of the opposite open contract at the moment you click on the button). Verify the order details, and then click on 'Buy' or 'Sell' to confirm the order.

Last Update: 2016-07-08

What is the settlement procedure/date for financial futures?

Most settlement methods of HKFE-related products are cash-settled contracts for differences, and the final settlement day is the first business day after the last trading day, which is the day immediately preceding the last business day of the contract month. The final settlement day for index options is the business day immediately following the expiry day, which is the business day preceding the last business day of the contract month.  

Meanwhile, the final settlement day of One-Day Rolling Currency futures contracts is the second FX business day after the day on which open positions are closed. If the day is a bank holiday either in New York or in the respective country, then settlement shall be on the next FX business day which is not a bank holiday in both New York and respective countries.

Last Update: 2016-07-08

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