Home Company Profile Contact Us  
Online Futures Trading

Customer Service

Monday to Friday
9:00 am - 5:00 pm

Closed on every Saturday,
Sunday and Public Holiday

Customer Service Hotline
(852) 2290 3860

Fund Deposit/Withdrawal Hotline
(852) 2207 2708

Fund Deposit/Withdrawal Facsimile
(852) 2537 5448


Address: Room 303, Houston Centre, 63 Mody Road,
Tsimshatsui East, Kowloon, Hong Kong


FAQs

1. What is a futures contract?
 
Futures contracts are legally binding commitments between two parties to buy or sell a specific financial instrument at a given future date at a price set at the time of dealing. One of the main attractions of futures contracts is the leverage that the contracts provide. With relatively little capital, usually a small percentage of the contract value, buyers and sellers are able to trade a full contract. As a result, the leverage can lead to substantial gain or loss on the original trading capital. The risks associated with futures contracts can be significant and investors must fully understand the risks involved before trading.
 
2. What is margin?
 
In futures market, both buyers and sellers are required to deposit an Initial Margin, which usually amounts to the anticipated daily price risk to cover market price fluctuations. At the end of each trading day, client's account is adjusted according to the value of each futures contract or “marked to market”. If the Initial Margin deposit falls below a stipulated level, known as Maintenance Margin, after marking-to-market, a margin call is issued and the client must deposit additional fund to restore the account to the level of Initial Margin.
 
3. What are the trading channels for futures contracts?
 
Clients can place orders of futures contracts through the following channels:
  • Electronic Trading Platform of Shacom Futures Limited for self-served trading
  • Manned phone-in trading channel via trading hotline at (852) 2290 3868.
  • Counter trading channel via our professional Futures Trader at our offices in Tsimshatsui East
 
4. How is profit and loss calculated in trading Standard and Mini index futures contracts?
 
For Hang Seng Index Futures, the contract multiplier is HKD 50 per index point. For Mini-Hang Seng Index Futures, the contract multiplier is HKD 10 per index point.
For example, an investor had a long position of one Hang Seng Index Futures contract at 20,000 points and closed out the position at 21,000 points afterwards. Excluding commission and other charges, a profit of HKD 50,000 (HKD 50 X 1,000 points) is made.
 
5. Is lock position function for futures contracts trading available in your company?
 
Lock position function for futures contracts trading is not available in our Company.
 
6. What is the sequence for closing out futures contracts?
 
Outstanding positions of current trading day are firstly matched and closed out in a first-in-first-out manner under our system. Those positions of previous trading day or before will then be closed out.
For example, an investor has two contracts of Spot Month Hang Seng Index Futures in his portfolio, one contract is opened at 21,000 pts today, and another contract was opened at 20,000 pts on previous trading day. Before market closes today, the client closes one contract of Spot Month Hang Seng Index Futures at 22,000 pts. In this example, the contract at 21,000 pts in the portfolio is closed out first.
 
7. What is a calendar spread?
 
Calendar spread is one of the most common methods in arbitrage. It involves buying and selling futures contracts sharing the same underlying assets with different expiry months at the same time.
For example, a client buys one contract of July Hang Seng Index Futures and sells one contract of August Hang Seng Index Futures at the same time. Since both contracts are correlated, part of the market risk is offset and thus the margin requirement is greatly reduced. If a client chooses to liquidate either one (but not both) of the two contracts in a calendar spread separately, the margin level will increase back to the margin of a standalone contract.