Option trading FAQ
Trading options is similar to trading stocks. You can place an 期權交易 order after entering the quantity and price.
You can choose to buy open or sell short to establish new positions in an option; if you already have a long or 期權交易 short position in an option, you can also close the position through sell and buy operations.
2. What are the supported order types for options?
U.S. equity options trading supports Limit Order, Market Order, Stop Limit Order, Stop Order, Limit if
Touched Order, Market if Touched Order, Trailing Stop Limit Order, Trailing Stop Order.
3. What's the trading 期權交易 unit for options?
Options are traded in units of contracts. Typically, One contract unit is 期權交易 equal to 100 shares (corporate actions may result in 1 option not being equal 期權交易 to 100 shares).
For example, in the case of option contract AAPL 170314 140.00C, its quoted price is $2, meaning the price (premium) of this contract is $2 * 100 = $200. Upon exercise, you will receive 100 shares of AAPL.
4. What are the trading hours for options?
Trading hours for the options are 9:30-16:00 EST.
Options do not support pre- and post-market trading, but some ETF and ETN options are late close exceptions and will trade until 16:15 EST.
If you place an order during non-trading hours, the orders will be kept in the FUTU trading system until 期權交易 the market open. The order will be submitted to exchanges by the sequence of placement, please be patient during the waiting time. For more details, please check What is off market orders .
5. Why does longing an option increase the margin requirement?
Generally speaking, longing an option does not require additional margins. However, in terms of account risk, longing an option is equivalent to converting part of your available funds into a non-collateralized option contract of equal value. As a result, the net assets in your account remain 期權交易 unchanged, but the funds available are reduced.
It can be approximated as follows: available funds = net assets - initial margin. The increased margin actually represents a decrease in available funds, similar in principle to when you buy non-collateralizable stock (margin rate of 100%).
Note: For the purpose of risk control, if you long an in-the-money or nearly at-the-money option within 1 hours before the close of the expiration date, the initial margin requirement to open a position will be calculated based on the buying power required to exercise 期權交易 the option.
6. Why option orders with a better price than the last traded price are sometimes not filled?
When trading U.S. stock options, you may sometimes observe that some orders are filled at worse prices but your own order placed at a 期權交易 better price is not filled. This may be caused by the following reasons.
1. The liquidity of the options market is normal. However, due to the special quotation rules of the U.S. market (BBO / NBBO), the bid and ask you see are 期權交易 期權交易 the highest bid and lowest offer price of a particular exchange. Some orders may be routed to other exchanges for transactions.
In addition, when the market is inactive, it is possible for quotes from different exchanges to vary widely but not be updated timely, which may result in orders not being filled.
2. Since there are Spread Orders in the market, an individual buy/sell order may not be filled.
For example, some brokerage firms allow customers to make a spread order by placing a long call order and a short call order. Both orders will be filled at the same time only if the 期權交易 prices of both orders match the ask and bid.
To take a specific example, 期權交易 an option on BABA has a bid price of $3.00 and the order is part of a spread order matched on the exchange. A $2.80 sell order submitted 期權交易 at this time may not be filled at 3.00.
All of the above descriptions are normal for the U.S. market. The options orders have been submitted and the outcome depends on the exchange.
What should I be aware of when trading options
Trading options is similar to trading stocks. You can place an order after entering the quantity and price.
2. Supported order types
Options trading supports Limit Order, Market Order, Stop Limit Order, Stop Order, Limit if Touched Order, Market if Touched Order, Trailing Stop Limit Order, Trailing Stop Order.
3. Unit
As a contract, an option is traded in units of one contract. Typically, 1 option contract is equal to 100 shares (Corporate actions may result in 1 option not being equal to 100 shares).
For example, there is an option contract AAPL 170314 140.00C. Its quoted price is $2 means the price (premium) of this 期權交易 contract is $2 * 100 = $200. Upon exercise, you will receive 100 shares of AAPL.
4. Trading Hours
Trading hours for the options are 9:30-16:00 EST.
Note: Options do not support pre- and post-market trading.
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The licensing information in relation to companies within Futu Group is as follows:
Futu Securities International (Hong Kong) Limited
Holder of 20 licenses and participantship in providing clients with reliable securities trading services.
In Hong Kong, China: Futu HK is a licensed corporation regulated by the Securities and Futures Commission of Hong Kong (CE No. AZT137) and has obtained Type 1 Licence for Dealing in Securities, Type 2 Licence for Dealing in Futures Contracts, Type 3 Licence for Leveraged Foreign Exchange Trading, Type 4 Licence for Advising on Securities, Type 5 Licence for Advising on Futures Contracts, Type 7 Licence for Providing Automated Trading Services, and Type 9 Licence for Asset Management. Futu HK is registered as MPF Intermediary, SEHK Participant, HKSCC Direct Clearing Participant, SEHK China Connect Exchange Participant, HKSCC 期權交易 China Connect Clearing Participant, SEHK Options Trading Exchange Participant, SEOCH Direct Clearing Participant, HKFE Futures Commission Merchant, and HKCC Clearing Participant.
In Europe: Futu HK is a member of London Stock Exchange and Turquoise.
In Singapore: Futu HK is a trading member of Singapore Exchange Securities Trading Limited and Singapore Exchange Derivatives Trading Limited.
Futu Trustee Limited
Holder of Trust 期權交易 or Company Service Provider Licence (Licence No. TC006475).
Futu Lending Limited
Holder of Money Lenders Licence (Licence No. 2034/2021).
Futu Insurance Brokers (Hong Kong) Limited
Holder of Insurance Broker Company Licence (期權交易 Licence No. FB1783).
Moomoo Financial Inc.
A broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) (CRD: 283078/SEC: 8-69739), and a member in good standing of Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).
Futu Clearing Inc.
A broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) (CRD: 298769/SEC: 8-70215), a 期權交易 member in good standing of Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), as well as a member of Depository Trust Company (DTC), a member of National Securities Clearing Corporation (NSCC) and the Options Clearing Corporation (OCC).
Futu Wealth Advisors Inc.期權交易 期權交易
An investment advisor registered with and regulated by the U.S. Securities and Exchange Commission (SEC) (CRD: 310790/SEC: 801-119635).
Futu Futures Inc.
A licensed entity registered with the National Futures Association (NFA) (NFA ID: 0523957) and regulated by the National Futures Association (NFA) and 期權交易 the Commodity Futures Trading Commission (CFTC).
Moomoo Financial Singapore Pte. Ltd.
Registered with the Monetary Authority of Singapore (MAS), moomoo SG is a Capital Markets Services Licence (Licence No. CMS101000) holder with the Exempt Financial Adviser Status. Moomoo SG has also received full SGX's memberships. Moomoo SG has been admitted as Clearing Member of The Central Depository (Pte) Ltd (CDP) , Trading Member of Singapore Exchange Securities Trading Limited (“SGX-ST”), Trading and Clearing Member of Singapore Exchange Derivatives Trading Limited (“SGX-DT”), and Depository Agent of CDP.
Futu Trustee (期權交易 Singapore) Pte. Ltd.
A Singapore trust company licensed by the Monetary Authority of Singapore to carry on trust business and services (Licence Number: No.TC000074).
Futu Securities (Australia) Ltd.
A 期權交易 securities dealer registered with and regulated the Australian Securities and Investments Commission (ASIC). Futu AU 期權交易 holds the Australian Financial Services Licence (Licence No. 224663).
什么是期权合约？
例如，假设 Alice 以 50 美元的价格买入了 100 股股票，希望市场价能上涨。但为了对冲股价下跌的可能性，她决定买入行权价格为 48 美元的看跌期权，每股支付 2 美元的权利金。如果市场转为熊市，股价跌至 35 美元，则 Alice可以行使合约以减轻损失，以 48 美元每股而非 35 美元每股的价格出售股票。但如果市场转为牛市，那么她就不需要行使合约，只会损失已支付的权利金（每股 2 美元）。
这样，Alice 将以 52 美元的价格实现 收支平衡（每股 50 美元 + 2 美元），而她的损失将封顶为 400 美元（已付的 200 美元权利金，加上假如以 48 美元每股的价格出售股票，最多亏损的 200 美元）。
Securities 期权 are defined as any 期权 on an individual 股票, US legal 股票, 期權交易 or any 现金 settled broad based 指数 期货. US legal residents are generally excluded from 交易 securities 期权 outside of the 美国 due 至 SEC restrictions. Interactive Brokers does 期權交易 not offer 交易 of European 和 Asian 指数期权 (except ASX200 指数期权) for Canadian resident accounts. It 期權交易 should be noted that 现金 settled 期权 outside of the US 和 加拿大 are 期權交易 included in the 商品 账户 in order 至 provide a 交叉 margin benefit with 期货.