HKEX Single Stock Futures
Leveraged, cash-settled exposure to Hong Kong's most actively traded stocks.
HKEX Single Stock Futures give investors a commitment to buy or sell the financial exposure equivalent to a specific amount (the contract multiplier) of shares of an underlying stock at a predetermined price on a specified future date. As the contracts are cash settled, there is no physical delivery of shares on expiry — profits and losses are credited or debited based on the difference between the contracted price and the final settlement price, multiplied by the contract multiplier.
Stock Futures are available on close to 90 underlying Hong Kong-listed stocks and ETFs, spanning blue chips, H-shares and China-linked names such as Tencent, Alibaba, HSBC, AIA, and Hang Seng China Enterprises Index ETF, giving investors broad single-stock coverage under one contract type.
Contracts trade on HKFE's Automated Trading System (ATS), where orders are electronically matched, and are registered, cleared and guaranteed by the HKFE Clearing Corporation (HKCC).
Key Benefits
- Low Transaction Costs
- As each contract is based on the value of several thousand shares, transaction costs are low relative to buying or selling the equivalent underlying shares directly.
- As each contract is based on the value of several thousand shares, transaction costs are low relative to buying or selling the equivalent underlying shares directly.
- Ease of Short Selling
- A short position can be established easily, allowing investors to benefit from an anticipated fall in the value of the underlying stock.
- A short position can be established easily, allowing investors to benefit from an anticipated fall in the value of the underlying stock.
- Leverage Effect
- Margin required to carry a position is only a fraction of the underlying stock's value, allowing hedging and trading with a smaller capital outlay.
- Margin required to carry a position is only a fraction of the underlying stock's value, allowing hedging and trading with a smaller capital outlay.
- Lower Currency Exposure for Offshore Investors
- Only the margin required to carry the position is subject to home currency fluctuations, reducing FX exposure relative to holding the underlying shares.
- Only the margin required to carry the position is subject to home currency fluctuations, reducing FX exposure relative to holding the underlying shares.
- Electronic Trading & Price Transparency
- Orders are electronically matched on HKATS by price and time priority, with bid, offer and transaction prices disseminated instantly.
- Orders are electronically matched on HKATS by price and time priority, with bid, offer and transaction prices disseminated instantly.
- Clearing House Guarantee
- Contracts are registered, cleared and guaranteed by HKCC, which acts as counterparty to all open positions and eliminates counterparty risk between its participants.
- Contracts are registered, cleared and guaranteed by HKCC, which acts as counterparty to all open positions and eliminates counterparty risk between its participants.
Source: HKEX
This advertisement has not been reviewed by the Monetary Authority of Singapore.
