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All futures contracts are traded with margin. Clients can open a position when the buying power exceeds the initial margin requirement.
Limit, Stop Limit, Limit if Touched, and Trailing Stop Limit orders.
If a client has multiple positions of futures contracts, they will be closed in chronological order. The position held for the longest period will be closed first.
Futures contracts that are not closed on the last trading day will enter the settlement stage. No further actions are required.
Moomoo Financial Singapore Pte. Ltd. does not support the physical delivery of commodity futures. Clients need to close their positions before the First Notice Day or the Last Trading Day.
Futures Options available for trade in the US market have the following criteria:
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Options buyers pay a premium, while sellers collect premiums and must provide margin.
Select any order type for the trade, such as limit order, market order, stop limit order, stop market order, limit if touched order, market if touched order, trailing stop limit order, and trailing stop market order.
First In First Out (FIFO), positions opened first are closed first.
European or American
The underlying futures contracts are delivered on the specified date at the execution price of the option, rather than being traded with offsetting contracts. For more details on physical delivery, please refer to this article US Futures Options Physical Delivery.
The contract terms are fulfilled by paying or receiving the in-the-money amount in dollars at expiration, rather than delivering or receiving the underlying futures contracts.
Note: Out-of-the-money options will expire worthless.
Exercise or assign Futures Options
Options are usually automatically exercised based on the final settlement price on the expiration date. However, American-style options may be subject to early exercise or assignment.
• Option buyer:
On the expiration date, out-of-the-money options will expire worthless with no actions taken, while in-the-money options will be automatically exercised.
• Option seller:
When an option is exercised, any open short positions will be randomly paired with the exercised options during settlement. Once your account is assigned, it must be settled according to the option's delivery mechanism.
Normally, in-the-money options are automatically exercised at expiration. If you have a short position on an in-the-money option at expiration, you will be assigned.
However, during actual trades, option buyers may choose not to exercise or exercise early based on their trading strategies which may affect the option seller. In these cases, the option seller may not be assigned if the buyer chooses not to exercise, or may be assigned with an out-of-the-money option if the buyer exercises.
Note: We currently do not support the forfeiture of options. If you get a Margin Call, you can either sell your options, sell other investments to cover it, or deposit more funds to make sure you have enough for the exercise.