Futu Securities Rolls Out Options Services for U.S. Stocks with Very Low Commission

    2018-12-14 10:55:01  PT

Recently, U.S. stocks have entered a turbulent trend. Some experts say it's the beginning of a bear market for equities, and some say it's just a short-term correction. Investors in general are very confused. But no matter whether it's a bear market or a bull market, with the stock market becoming more volatile, it is useful to learn how to use options trading to hedge risks. Options trading is also a vital tool for investment experts to gain profit in a falling or fluctuating market.

Futu Securities, a rising star in the online brokerage industry, recently launched a U.S. stock options trading service, which gives investors additional tools for risk-hedging and profit-making, especially for those who are familiar with options trading.

Through the Futu Niu Niu app, investors can have access to over thousands of stock options trades. With the app, clients can also check the details of each option, trading volume, and past performance. To celebrate the launch of the new service, Futu is giving away two welcoming gifts. First, clients who invite friends to open a new Futu brokerage account between Nov. 13 to Dec. 31 can enter the lottery for a free stock. The stock could be Apple, JD.com, Alibaba, Bilibili, or another popular U.S. stock. If the friend deposits funds into his or her account before the deadline, clients can enjoy up to 30 days of U.S. stock options commissions as low as 50 cents per contract.

For those who are only used to mainland Chinese markets where options trading is rare, we will introduce what is U.S. stock options trading in the following story.

U.S. stock options trading: hedging + leverage

A listed option is an option that gives investor the right to buy or sell a certain number of underlying assets at a specific price at a particular time in the future. It is as an effective hedging tool against a declining stock market to limit downside losses, and options can also be used to generate recurring income.

Options can be divided into call options and put options. If a stock rises, the corresponding call option will rise, and the put option will fall; if the stock price falls, the corresponding put option will rise, and the call option will fall. For example, when investors are worried about the stock price falling in the future, they can buy a put option and make up the loss through the options trading. In other words, buying a put option is equivalent to buying an insurance policy for your own stock.

Futu's options trading services not only support U.S. stock options trading, but also have long and short functions. Futu has a proprietary risk-control system for derivatives trading. What's important is that clients of Futu can enjoy commissions as low as 50 cents per contract during the promotion period, the lowest price in the industry and very affordable for all users.

In addition, speculating with options, instead of buying the stock outright, is attractive to some traders since options can provide five-to-10 times of leverage. Of course, high leverage brings high risk. For common investors, it also means that you must master the knowledge of comprehensive options trading and risk management before you make the first transaction.

Technology first: Futu brings new technology to clients

As a new-economy company, Futu Securities strives to provide the best and cheapest service to all clients and to bring transformative and disruptive innovation to financial services through the application of new and emerging technologies.

In 2018, Futu launched several surprising features to users, including the ultra-low IPO subscription fee, zero-deposit new share subscription, after-hours trading, Nasdaq level 2 total view service, etc. Compared with traditional brokers, Futu Securities cares about investor education, and we provide incentives and a lower threshold for investors to participate in the market.