Profit and Loss
- Free real time quotations are available for for e-trading on Power Futures, therefore profit and loss positions of these products are be calculated from real time quotes.
- To tradeother overseas futures and option products, please contact Account Executive . Profit and loss positions of non e-trading products will be calculated using the closing price of the preceding trade day.
- Since the buying power will be affected by profit and loss positions, the above-mentioned scenarios will therefore also affect the accuracy of buying power as shown on Power Futures.
| Example |
On Day 1, you successfully placed an order through account executive for a non-electronic trading product at previous closing price of US$50. When market opened on Day 2, the price was US$75 and closed at US$80.
At market open on Day 2, the position will be reflected using previous day close, $US50, hence the US$25 profit will not be reflected. On Day 3, the profit made will be shown using the Day 2 closing price, US$80. |
Overseas options#
- SPAN does not apply to overseas futures position and overseas options position in Power Futures. For overseas options, all orders can only be placed via telephone. Gross margin calculations applies toboth long and short position.
- Buying power for local and overseas futures will be underestimated if a client opened overseas options position.
| Example |
If a client opened a long position in spot month light sweet crude oil futures, and a long position in call option, margin for 2 contracts are required. |
# Electronic overseas option trading service is not available on Power Futures. Order must be placed through account executive or 24 hours investment centre. AE commission scheme applies.
Currency
We will use trading currency for settlement. If negative balance occurs, we will automatically exchange to relevant currency for trading without prior notice.
Risk of low liquidity
In the futures market, some products may have low liqudity due to various reasons. The bid ask spread maybe large or there is temporarily no buyers or sellers. Some forward contracts may also have liquidity problems. We would not suggest you to use Conditional/ Stop Loss Orders to process such orders. Conditional and Stop loss orders are triggered according to market price. If the product has low liquidity, even if the price was triggered due to fluctuation in other markets, the criteria may not actually exist (There was no successful order price in the particular market), or even if there's transactions, it may not be triggered due to lack of bid / ask requests, and it may also be a bust trade due, so the stop loss/ stop gain. For these orders, we would recommend the use of Limit Orders instead.
Points to Note for LME (London Metal Exchange) products：
- LME product specifications：
LME product is traded with 3 months contracts, where settlement can be done everyday unlike other futures contracts. When you would like to settle LME contracts, please specify the “Prompt Date” of your to be settled contract. When you want to settle any outstanding positions, you would need to contact our 24 hours customer service hotline or your AE to arrange for a set of Carry Trade for you.
- LME Online Trading system：
- Taifook online trading platform provides quotations and trading services.
- Products available：Aluminum、Copper、Lead、Zinc、Nickel、Tin.
- Trading Hours (HK Time)：08:00am - 02:00 am (Summer Time)
- Contract Settlement：
- Contracts can only be settled automatically online if you buy and sell within the same day or you have long and short contracts for the same Prompt date. For contracts of different Prompt date, please contact us to arrange carry trade on the same day as when you settle your contract.
- For any long and short spread position contracts, spread margin will be collected.
- If the Carry trade request was raised 14 days after closing action (including Saturday, Sunday and Public holidays), additional commission and handling fee will be charged.
- If you would like to place Carry trade orders，please contact your AE or our 24 hours investment centre at 2213 8333。 All pricing for Carry trade is determined according to the premium or discount pricing at the moment of request.
- Last Trading day of open interests：
Since we do not provide physical delivery, all open interests should be settled 3 days before settlement day. If you did not settle or raise a request to settle your positions before the last trading day, we will be forced to settle for you on the last trading day. If you settle your positions after we forced settle for you, the outstanding contracts will be regarded as new position.
- Risks from low liquidity
Sometimes, there will be low liquidity with LME products. These situations happen when the buy / sell spread is large or there are no buyer or seller. Please do not use conditional stop loss orders during low liquidity situations. We would recommend you to use limit orders to avoid make sure orders will be executed.
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