Introduction to HKEX Index Options
1. Introduction to HKEX Index Options
HKEX Index Options are derivative products based on major Hong Kong stock indices, such as the Hang Seng Index (HSI), Hang Seng China Enterprises Index (HHI), and Hang Seng TECH Index (HSTECH). Investors can buy or sell call and put options to flexibly handle market swings — whether the market is rising, falling, or range-bound — for purposes such as risk management, speculation, or strategic trading.
Main index options currently include:
Hang Seng Index Options (HSI Options)
Hang Seng China Enterprises Index Options (HHI Options)
Hang Seng TECH Index Options (HSTECH Options)
Mini HSI / Mini HHI Options
2. Standard and Mini Contracts’ example
HSI Options | Standard Contract | Mini Contract |
Product Code | HSI | MHI |
Underlying Index | Hang Seng Index | |
Contract Multiplier | HK$50 per index point | HK$10 per index point |
Minimum Price Fluctuation | 1 index point | |
Contract Months | Short-dated Options:- Spot, next three calendar months & next three calendar quarter months; Long-dated Options:- the next 3 months of June & December and the following 3 December months | Spot, next calendar month, & next two calendar quarter months |
Exercise Style | European Style | |
Expiry Day | The second last Trading Day of the Contract Month | |
Exchange Fee | HK$10.00 | HK$2.00 |
Commission Levy | HK$0.54 | HK$0.1 |
3. Weekly vs Monthly Options
To complement the existing monthly index option series, HKEX introduced Weekly Index Options on the Hang Seng Index, Hang Seng Tech Index and Hang Seng China Enterprises Index. These provide investors with additional short-term tools for risk management and tactical trading.
Weekly index options are similar to monthly index options, except that their expiry date falls on the last trading day of each week, rather than the second last trading day of each month.
With a shorter maturity, weekly index options contracts have a much lower option premium and faster time decay comparing to the monthly index options contracts, thus allowing short term trading and more attractive short options strategies.
4. HKEX Index Options vs Futures
Both HKEX index options and HKEX index futures are stock index derivatives that trade the performance of Hong Kong’s major stock indices and are both available in your Futures account segment.
However, their characteristics differ:
HKEX Index Futures: Both buyer and seller are obligated to settle according to the contract terms, regardless of market direction.
HKEX Index Options: The buyer has the right but not the obligation to buy or sell the relevant assets; the seller is obligated to fulfil the terms when assigned.
5. FAQ
（1）Regular Trading Hours
Session | Trading Hours |
Morning | 9:15-12:00 |
Afternoon | 13:00-16:30 |
After-Hours | 17:15-03:00 |
Notes:
No afternoon or after-hours session on Christmas Eve, New Year’s Eve, or Lunar New Year’s Eve. Morning session runs from 09:15 – 12:30 on these days.
No after-hours trading on UK and US bank holidays.
Trading may be affected by typhoon or black rainstorm warnings. Please refer to HKEX announcements or news updates for details.
（2）Expiry and Settlement
Session | Trading Hours on Expiry Day |
Morning | 9:15-12:00 |
Afternoon | 13:00-16:00（closes 30 minutes earlier than usual） |
Notes: No afternoon session if the expiry day falls on Christmas Eve, New Year’s Eve, or Lunar New Year’s Eve.
Exercise Style: European (can only be exercised on the expiry day).
Settlement Method: Cash-settled, no physical delivery of the underlying index's constituent stocks.
Settlement Day: The first trading day after expiry.
Final Settlement Price: The average of the relevant index quotations during the prescribed period on expiry day, rounded down to the nearest whole index point.
（3）Trading Rules
Trading Access: Required.
T+0 Trading: Positions can be opened and closed within the same trading day.
Order Validity: Orders are day-only and will be automatically canceled at the end of the day or night session. Orders can only be placed during trading hours.
Margin Requirement: A portion of funds in your account will be frozen as margin to ensure fulfillment of contract obligations. Margin levels are dynamically adjusted based on market volatility and position risk.
（4）Fees and Charges
Scenario | Trade | Exercise (Cash Settlement) | Exercise (Physical Delivery) | Do NOT exercise |
Fee Type |
|
| Not applicable (no physically deliverable underlying) | No fees charged |
For HK stock options, please refer to Hong Kong stock options.