How to Conduct Hong Kong Stock Options Trading with Tiger Brokers: A Complete Process Guide

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To smoothly conduct Hong Kong stock options trading, you first need to complete five core steps:

• Account opening
• Funding
• Permissions activation
• Order placement
• Risk management

Tiger Brokers provides multi-market support, low commissions, and rich trading tools. You can transfer USD via Hong Kong banks, enjoying a convenient funding experience. The platform helps you quickly master each step, making trading more efficient.

Key Points

• Opening an account and funding with Tiger Brokers is simple and fast, supporting multi-market accounts and USD transfers, making it easy to start Hong Kong stock options trading.
• Activating Hong Kong stock options trading permissions requires meeting asset and experience criteria and passing a knowledge test to ensure you have the necessary trading capabilities.
• Tiger Trade APP offers a wide range of contract choices and various order placement methods, helping you flexibly develop investment strategies and manage orders.
• During trading, pay attention to fees and margin rules, manage risks rationally to avoid losses due to market fluctuations.
• Use the platform’s market tools and practice with a demo account to enhance trading skills, while enjoying beginner rewards to reduce investment costs.

Account Opening and Funding

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Registration and Identity Verification

You can start the account opening process through the Tiger Trade APP or the official website. First, you need to fill in personal identity information, including your name, ID number, and contact details. The platform will require you to upload identity documents, such as an ID card or passport. You also need to provide details about your occupation, income source, and investment experience. After completing these steps, you must undergo identity verification. Tiger Brokers will review your information to ensure it is authentic and valid. You also need to read and sign relevant agreements, confirming that you understand the basic rules and risks of Hong Kong stock options trading.

Hong Kong Stock Account Activation

After completing identity verification, you can proceed to open a Hong Kong stock account. Tiger Brokers supports multi-market accounts, allowing you to activate accounts for Hong Kong stocks, U.S. stocks, and other markets simultaneously. When activating a Hong Kong stock account, the system will prompt you to provide additional information. You need to ensure the account details are accurate before submitting the application. The platform will complete the review within 1-2 business days. Once approved, you can officially enter the Hong Kong stock options trading market.

Funding Process

You need to deposit funds into your account. Tiger Brokers supports multiple funding methods. You can transfer USD via Hong Kong banks to the designated account. When funding, ensure you provide the correct recipient information and reference notes. The platform will exchange funds based on real-time exchange rates. Typically, funds arrive within 1-2 business days. It’s recommended to prepare relevant documents in advance to ensure smooth funding. Once the funds are successfully deposited, you can start Hong Kong stock options trading.

Hong Kong Stock Options Trading Permissions

Permission Application Requirements

To participate in Hong Kong stock options trading, you first need to meet the platform’s entry requirements. Tiger Brokers will review your investor type, asset size, and trading experience. The table below helps you quickly understand the specific requirements for different investors:

You need to prepare relevant asset proofs and trading records in advance. The platform will require you to complete an options knowledge test and have some demo trading experience. This helps you better understand the risks and rules of Hong Kong stock options trading.

Activation Process

You can apply for Hong Kong stock options trading permissions directly within the Tiger Trade APP. The specific process is as follows:

1. Go to account settings and select “Hong Kong Stock Options Trading Permission Application.”
2. Upload asset proofs and relevant documents as prompted.
3. Complete the options knowledge test and risk assessment.
4. Wait for the platform’s review, typically completed within 1-2 business days.

Tip: Hong Kong stock options trading carries high risks. Before activating permissions, carefully read the platform’s risk disclosure documents. Only by fully understanding the risks can you better protect your funds.

Hong Kong Stock Options Trading Process

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Contract Search and Selection

To start Hong Kong stock options trading, you first need to learn how to search and select suitable options contracts. Within the Tiger Trade APP, you can quickly locate target contracts using these steps:

1. Open the Tiger Trade APP and go to the “Market” page.
2. Search for the Hong Kong stock underlying asset you’re interested in, such as Tencent Holdings or Alibaba.
3. After selecting the stock, click the “Options” tab.
4. The system will display all tradable options contracts, including various expiration dates and strike prices.

You can choose call or put options based on your investment goals. The platform also supports multi-leg orders and combination strategy functions. If you want to buy and sell multiple contracts simultaneously, you can use the “Multi-Leg Strategy” tool. This helps you implement more complex investment strategies, such as bull spreads or bear spreads.

Tip: When selecting contracts, use Tiger Trade’s built-in filtering and sorting functions to quickly find contracts with high trading volume and good liquidity. This can reduce trading costs and improve execution probability.

Order Placement and Order Types

After selecting the target contract, you can proceed to place an order. Tiger Trade APP offers various order placement methods with a simple and intuitive interface. You simply click the target contract, enter the order page, and specify the buy or sell quantity and price.

Common order types include:

• Limit Order: You can set a specific price, and the system will execute only when the market price reaches your set price. This is suitable for scenarios where you want to control the buy or sell price.
• Market Order: The system executes immediately at the current best market price, suitable for those prioritizing quick execution.

You can also set take-profit or stop-loss orders to automatically lock in profits or limit losses. Tiger Trade supports order management functions, allowing you to check order status, modify, or cancel unexecuted orders on the “Orders” page.

Note: The Hong Kong stock options market is highly volatile. Before placing orders, carefully verify contract details and order prices to avoid losses due to operational errors.

Position Holding and Closing

After an order is executed, your contract will appear on the “Positions” page. You can view your current Hong Kong stock options contracts at any time, including quantity, cost, and floating profit/loss. Tiger Trade updates position data in real-time, helping you stay informed of market changes.

To close an existing position, you can sell the held contracts through a “close position” operation. Simply select the target contract from the position list, click “Close,” and specify the sell quantity and price. The platform supports both limit and market orders for closing.

You can also use the “Combination Close” function to process multiple contracts at once, improving efficiency. Tiger Trade automatically calculates fund changes after closing, facilitating subsequent investment decisions.

Tip: Regularly review your positions, monitor contract expiration dates and margin changes, and adjust your investment strategy in time to reduce the risks of Hong Kong stock options trading.

Fees and Risks

Trading Fees

When conducting Hong Kong stock options trading, you need to understand the platform’s fee structure. Tiger Brokers charges 0.2% of the transaction value per contract as commission, with a minimum commission of 3 HKD (approximately 0.38 USD at 1 USD = 7.8 HKD). Additionally, each contract incurs a 15 HKD (approximately 1.92 USD) platform fee. This results in a minimum handling fee of 18 HKD (approximately 2.3 USD) per transaction. You also need to be aware of regulatory fees, as detailed in the table below:

Before trading, you can view detailed fee breakdowns in the Tiger Trade APP to plan costs effectively.

Leverage and Margin

Hong Kong stock options trading uses a margin system. When opening a position, the platform calculates the required margin based on the contract type and market price. For example, the margin for a call option obligation position = [previous settlement price + Max(12% × underlying previous closing price - out-of-the-money amount, 7% × underlying previous closing price)] × contract unit. The company typically adds a 15% buffer to the exchange’s margin requirement. When your margin risk level reaches 90%, the system issues a warning; at 100%, it triggers forced liquidation. You need to monitor your account’s risk level to avoid forced liquidation due to insufficient margin.

Risk Warning

Hong Kong stock options trading is a high-risk investment. You may incur significant losses due to market fluctuations, leverage effects, or operational errors. It’s recommended to thoroughly read the platform’s risk disclosure documents before trading to fully understand the rules. You can use the demo trading function to gain practical experience and gradually develop a suitable risk management strategy. Only rational investing can better protect your funds.

Practical Tools and Rewards

Market and Analytical Tools

In the Tiger Trade APP, you can access real-time market data for multiple markets for free. The platform provides real-time data for U.S. stocks, Hong Kong stocks, A-shares, and UK stocks, meeting your diverse investment needs. With a single account, you can invest in major global markets like U.S., Hong Kong, and UK stocks. The Tiger Trade APP interface is fully in Chinese, easy to use, and suitable for Chinese investors. Real-time market data has low latency, helping you quickly grasp market dynamics.

• You can access the following market data for free:
  • Real-time data for U.S., Hong Kong, and A-shares
  • Real-time data for UK stocks on the London Stock Exchange
• You can use a demo trading account to practice real-market operations without risking actual funds.
• The platform also provides technical analysis tools, including K-line charts, moving averages, and trading volume, to help you analyze market trends.

Tip: You can customize the market page in the APP to focus on stocks and options contracts of interest, improving trading efficiency.

Beginner Rewards

After completing your first Hong Kong stock options trade, you can receive a stock voucher package reward from the platform. The voucher package can be used to offset part of the stock trading handling fees, reducing your investment costs. After completing a trade in the APP, the system automatically issues the reward. You can view and activate vouchers in the “My - Rewards Center” section.

Note: Vouchers have an expiration date. You need to activate and use them within the specified period to avoid losing the reward. Stay updated on platform events to claim more benefits.

After completing account opening, funding, permissions activation, and order placement, it’s recommended to continuously monitor risks and fees. In Hong Kong stock options trading, the following risk points are easily overlooked:

1. Low-probability risks may lead to account blowouts, so avoid overconfidence.
2. The exchange has a position and purchase limit system to prevent excessive risk concentration.
3. Margin and forced liquidation mechanisms ensure market stability.

You can practice step-by-step, regularly check Tiger Brokers’ latest policies and features, and enhance your trading skills.

FAQ

How to fund USD in Tiger Brokers?

You can transfer USD via Hong Kong bank wire to the platform’s designated account. Include your account information in the transfer notes. The platform converts funds based on real-time exchange rates, typically arriving in 1-2 business days.

What is the minimum capital required for Hong Kong stock options trading?

The platform recommends an average daily account balance of at least 500,000 USD, approximately 3.9 million HKD (at 1 USD = 7.8 HKD). Check the platform’s latest announcements for specific requirements.

Which Hong Kong stock options contracts does Tiger Brokers support?

You can trade mainstream Hong Kong stock options contracts listed on the Hong Kong Exchange. The platform regularly updates the contract list. You can search for target contracts in the APP for detailed information.

How to manage risks in options trading?

You can set stop-loss and take-profit orders to lock in profits or limit losses. Regularly review positions and monitor margin changes to avoid forced liquidation due to market fluctuations.

Can beginners practice with a demo account?

You can open a free demo account in the Tiger Trade APP. The demo account supports Hong Kong, U.S., and other markets, helping you familiarize yourself with the process without risking real funds.

After learning the full process of Hong Kong stock options trading on Tiger Brokers, it’s clear that despite the platform’s rich tools and low fees, the high risks and complex margin mechanisms of options trading remain a challenge for new investors. The cumbersome account opening, funding processes, and high entry barriers might also deter you from even getting started. These pain points can affect your investment efficiency and experience. BiyaPay was created to solve these challenges, offering a safer and more efficient cross-border financial solution. We’ve significantly simplified the traditional KYC process with one-stop digital identity verification, so you don’t need a complex overseas bank account to invest in both U.S. and Hong Kong stocks on one platform, easily diversifying your assets. With our real-time exchange rate query feature, you can always seize the optimal conversion opportunities and ensure every transaction is worthwhile with a remittance fee as low as 0.5%. Say goodbye to tedious processes and non-transparent fees, and register with BiyaPay today to begin your new era of smart investing.