Chief Group > Securities > Stock Options > Service Fees & Charges
Service Fees & Charges

Service Fees & Charges

Service Fees & Charges

Items Charges Minimum Charges
Commission (Phone-in) 0.50% of Contract Value HK$100
Commission (Internet Trade) 0.25% of Contract Value HK$50
Trading Tariff Tier 1 : HK$3 for each contract
Tier 2 : HK$1 for each contract
Tier 3 : HK$0.5 for each contract
-
Exercise Fee # HK$2 for each contract -

  • Commission is calculated separately for each side (buy / sell), different trading channels (telephone and internet) and different position (open new position and close position), and is charged once for the same contract for each 4 different transaction prices.
  • In the event of any late settlement of stock options assignment, interest on the ate settlement amount and a penalty equivalent to 0.05% of the assigned value (subject to a min. amount of HK$200) would be charged. Moreover, our company reserves the rights of restricting stock options assignment and exercise of such client in the future.
  • In case of selling call options, if the client cannot settle the assignment on time which is assigned on the day before the ex-dividend date, mandatory buy-back must be done on the ex-dividend day and an amount equal to the dividend of the buy-back stocks would be debited.

#   Exercise and assignment of stock options involve settlement of the underlying stock. Normal commission rate of phone orders and other related charges (including stamp duty, HKEX trading fee, SFC transaction levy and CCASS stock settlement fee) will be charged.

All information is subject to change without prior notice.

Margin Requirement

  • Premium paid on or before T+1 (but no margin is needed) if buy an option (i.e. long position).
  • Margin is required when you sell an option (i.e. short position). Margin requirement and delayed stock option quotation can be downloaded from HKEX.
  • However, if a writer sells a call option and the corresponding amount of shares had been used for covering, no margin is required. (Daily update)
  • For the strategy that combining one or more option positions, the margin requirements may not be the same as the amount listed by HKFE.
  • Stock Option is settled by stock delivery. Clients who are holding short position of call/put option should prepare enough stock or cash for settlement. For clients who are holding long position of call/put option, they should make own decision whether to close the position by 16:00 or inform our company to exercise the option by 17:00 on the last trading day. In addition, since only options that are 1.5% or more in-the-money upon expiration will be exercised automatically by the HKEX and that our company will not ask the client if they would like to exercise in/at-the-money options, clients who are holding in/at-the-money options should pay special attention on the exercise decision and its deadline.

All information is subject to change without prior notice.

Settlement issues

  • Client should reserve enough cash for buying the underlying stock in case of the settlement of short put. The amount required should be available in the account on or before T+2 of the assignment. Please be reminded that client should close their positions on or before the last trading day if he does not wish to buy the underlying stock. Selling stock on T+1 upon the assignment would be regarded as late settlement as well.
  • Client must prepare the underlying stock on or before T+2 for the settlement of short call. Any late settlement would be regarded as short selling.
  • Our company would exercise the stock option on behalf of our client on condition that they must have enough cash or underlying stock for the settlement if they wish to exercise put or call option.
  • Position limit is imposed by our company on each single stock option class according to its liquidity and the corresponding market capitalization. Client could enquire and apply for extra position limit if necessary.

In the event of any late settlement of stock options assignment, interest on the late settlement amount and a penalty equivalent to 0.05% of the assigned value (subject to a min. amount of HK$200) would be charged. Moreover, our company reserves the rights of restricting stock options assignment and exercise of such client in the future.

All information is subject to change without prior notice.


Top