Derivatives Product Introduction
Callable Bull / Bear Contracts (CBBCs)
There are two types of CBBCs, namely callable call contracts and callable put contracts. Investors will buy callable call contracts when they have a bullish outlook on the market and callable put contracts when they are bearish. Prices of CBBCs will fluctuate according to the price changes in the underlying assets, providing a leveraged investment with a small initial investment amount. Besdies exercise price, a distinguish feature of CBBCs is its recoverable (knock out) option, in which CBBCs will stop trading immediately when the call price is reached during the investment period and trigger the MCE situation.
Derivative warrants are investment tools which give investors the right (not obilgation) to buy / sell the underlying assets (e.g. stock) at a fixed exercise price on / before the expiry date. Call warrants gives you the right to buy the underlying assets while put options give you the right to sell the underlying assets.
Exchange Traded Funds (ETF)
Exchange traded funds (ETF) is authorized by Securities and Futures Commission (SFC) and traded on Hong Kong Exchange and Clearing Limited (HKex). The main investment objectives of ETF is to track, analog and correspond to the performance of a certain index. The index may cover a single stock market, category, region or other global stock markets. The funds that ETF track may also cover bonds or commodities.