English
Back
Log in to access Online Inquiry
Back to the Top

Option Paper Trading Rules

1. Option paper trading involves the US stock market. By tapping the 「Create」 button, you can open a virtual account for each market and will have an initial asset of 1 million USD in each account, respectively.

2. The product types you can trade in paper trading for the US stock markets are limited to stock option products listed on the exchanges.

3. US stock market trading hours: 9:30 AM-4:00 PM (Eastern Time).

4. US stock option exercise rules: Exercise is not supported. On the expiration date, if the intrinsic value of an option is less than 0.01 USD, the option’s value will be 0; otherwise the option will be settled in cash.

5. Option trading rules: Only limit orders are supported; positions in in-the-money options must be closed out before the expiration date.

6. Option settlement rules: The paper trading system has simplified the settlement rules. Proceeds from selling option contracts settle the same day (T+0).

7. The paper trading system is not necessarily consistent with the real stock market. In case of any inconsistency, data in the paper trading system shall prevail.

8. If you hold stock options of a listed company which is delisted for any reason, no longer trade, you may no longer trade such options in later trading days, and the system will return the virtual funds to your virtual account at the last closing price.

9. US stock option transaction fee: Commission: 0.65 USD per contract, minimum 1.99 USD per order; Platform fee: 0.3 USD per contract; SEC regulatory fee: 0.0000229 * transaction amount, minimum 0.01 USD per order (sells only); Trading activity fee: 0.00279 per contract, minimum 0.01 USD per order (sells only); Options regulatory fee: 0.02915 USD per contract.

10. Paper trading adopts the rules of order matching. The highest bid (best bid) and the lowest ask (best ask) are the best prices for matching. A buy order at a price higher than the best ask or a sell order at a price lower than the best bid satisfies the matching conditions and will be automatically queued for execution.

11. Transaction fees deducted in paper trading system are not real expenses. The paper trading system is free of charge, so please feel free to use it.

This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors.  It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose of the above content.