Category Archives: Business

short option position

By admin | Published: January 12, 2010
It is extremely important that you remain accessible to your broker while you have an open option position – particularly a short option position. Given the need for rapid action in the event, for example, of a margin call being made or a position being assigned, your broker may need your instructions at very short [...]
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Central Clearing House

By admin | Published: January 7, 2010
All stock option contracts traded at HKEx will be cleared through a central clearing house – The Stock Exchange of Hong Kong Options Clearing House Ltd.(SEOCH), a wholly owned subsidiary of HKEx. By novation, SEOCH acts as a counter party to its Participants in relation to each option contract traded on HKEx and manages counter [...]
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Leverage option

By admin | Published: January 6, 2010
An option is a leveraged instrument. In the case of a long call option, an investor pays a premium to acquire the right to buy shares at a fixed price at a future date. The premium is only a portion of what the investor would pay if he buys then shares outright. If a share [...]
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