Verified 1 Quote: Both experienced investors and novices can participate in Hang Seng Index futures and options investment with 33 index components. As both local and international investors regard the Hang Seng Index as an indicator of the performance of Hong Kong's stock market and portfolio, investors have been using Hang Seng Index futures and options contracts for investment trading and risk management.
Cost-effective ratio: Hang Seng Index futures and options contracts can provide more cost-effective investment opportunities. Investors only need to pay a deposit when buying and selling Hang Seng futures and options contracts, and the deposit only accounts for a part of the contract face value, which makes hedging activities more cost-effective.
Low transaction cost: each Hang Seng Index futures option contract is equivalent to a group of stocks with high market value, and each transaction only charges a commission, so the transaction cost is lower than that of buying or selling this group of stocks.
4 Performance guarantee of the clearing company: Like other futures and options traded on the futures exchange, the Hang Seng Index futures and options contracts are now registered, settled and provided with performance guarantee by the Hong Kong Futures Clearing Company Limited owned by the futures exchange. As an opponent of all open contracts, HKSCC will effectively eliminate the risks of clearing company participants. This guarantee will not shift the financial responsibility of clearing company participants to his customers. Therefore, investors should be cautious when choosing brokers to buy and sell.