Usdcny options trading
Target Customers It is applicable to legal entities including enterprises, public institutions, state organs, social groups, the army, foreign-invested enterprises etc. Features and Advantages i. Main characteristics of foreign exchange options 1. RMB-foreign exchange option is a risk control tool for effective risk hedging and value preservation.
Purchase of RMB-foreign exchange options is featured by limited risks but unlimited gains, protecting customers from possible losses arising from exchange rate fluctuations. Customers can keep maximum foreign exchange losses below option premium through usdcny options trading RMB-foreign exchange option for hedging, while retaining the chance of gaining from favorable exchange rate fluctuations. Customers can reduce exchange settlement or usdcny options trading costs while assuming market fluctuations of certain degree through selling RMB-foreign exchange options to gain option premium.
Competitive quotations As the first domestic bank to set up a professional quantitative analysis team, ICBC has made breakthroughs in quantitative analysis technologies for independent pricing usdcny options trading risk management of usdcny options trading. It is capable of independent pricing and highly competitive in the industry. Besides, as ICBC is one of the most influential market makers on the inter-bank RMB-foreign exchange market, it has maintained a leading position in terms of transaction volume for years.
Thus, it can offer customers with competitive quotations. Ongoing quality sales services ICBC will provide ongoing dynamic management services and timely furnish customers with relevant market information, sending customers market capitalization assessment results of their existing usdcny options trading on a monthly basis and notifying them of exercising options the working day prior to expiry date.
Case Study Case 1: Call option An enterprise needs to pay for imports in USD in one month. In this way, the customer saves RMB0. Put option An enterprise is expecting to receive an export payment in one month. In this way, the customer gains extra RMB0. Sale of call option An enterprise is expecting to receive an export payment in USD in one month. Then the customer can use the option premium received in the beginning to improve the settlement price.
Sale of put option An enterprise is expecting to make usdcny options trading import payment in USD in one month. Then the customer can use the option premium received in the beginning to improve the purchase price. As per foreign exchange administration provisions, RMB-foreign exchange options handled for customers are limited to general European option, including purchase of call option, purchase of put option, sale of call option and sale of put option on commission basis.
Preparations 1 Customer assessment: ICBC will decide whether to conduct the transaction with the customer after assessing its risk tolerance. Application Before the customer submits an application, ICBC will review materials submitted by the customer including the basic commercial contract.
Reversed position close prior to expiry date In need of reversed position close prior to expiry usdcny options trading, the customer shall submit certifying materials and a letter of commitment, which will be reviewed and approved by ICBC before reversed position close is conducted. Option exercising by customer 1 Exercising option on exercise date: On expiry date, the customer submits an Application for Exercising RMB-Foreign Exchange Option and all materials needed usdcny options trading certify authenticity of the underlying trade.
After review and approval, ICBC will conduct delivery for the customer. The customer may waive the option on expiry date. In case the customer suffers from partial losses usdcny options trading cash flow under foreign exchange receipt or payment due to changes to the basic commercial contract, it may submit materials certifying such changes and a letter usdcny options trading commitment.
After reviewing the materials usdcny options trading, ICBC usdcny options trading handle partial exercise for the customer. Meanwhile, the customer may also apply prior to expiry date for delivery during grace usdcny options trading. Grace period covers the three working days following expiry date.
Delivery within grace period is also deemed as proper performance of contract. Service Channels and Hours Customers usdcny options trading access conditions can apply to tier-1 branches or tier-2 branches with authority to run RMB-foreign exchange option business for such business during corporate banking business hours.
ICBC defines three working days following expiry date as grace period for handling delivery of RMB-foreign exchange option, during which delivery handled will be deemed as due completion of delivery.
After reviewing the materials submitted, ICBC will handle partial exercise of the contractual principal for the customer. Upon expiry, the customer shall perform delivery as per the agreement. Usdcny options trading to expiry, the customer may apply for reversed position close for its RMB-foreign exchange option, in case of changes to cash flow of foreign exchange usdcny options trading or payment due to changes to the basic commercial contract.
The customer shall fill out the designated power of attorney, and furnish materials certifying such changes and a letter of commitment. After reviewing the materials submitted, ICBC will conduct reversed position close in the corresponding amount for usdcny options trading option bought.
Risk Promp t 1. Exchange usdcny options trading risk The product is trading of exchange delivery rights in usdcny options trading. ICBC will provide the customer with a pre-valuation price for reversed position close according to market conditions. The customer shall clearly indicate in the power of attorney on reversed position close, the validity of such power of attorney and the price acceptable.
Legal risk Customers shall completely understand every article in texts and make independent decision based on their own judgment. Customers shall take into account force majeure and possible accidents, losses arising from which should be borne by customers and have nothing to do with ICBC.
Notes RMB-foreign exchange option requires high timeliness so as to avoid losses incurred from fluctuating market prices in operation. Definitions European option means option cannot be exercised until the agreed expiry date, and the option buyer cannot exercise the option prior to the contractual expiry date.
Call option means the option buyer, through paying a certain amount of option premium to the option seller, gains the right usdcny options trading purchase a certain quantity of specific assets from the option seller at the agreed price within validity of the option contract, but has no obligation to do so.
Put option means the option buyer, through paying a certain amount of option premium to the option seller, gains the right to sell a certain quantity of specific assets to the option seller at the agreed price within validity of the option contract, but has no obligation to do so. The information provided on this page is for reference only. Concrete business shall be subject to the announcement and provisions of the local outlet. Working Capital Loan Service. Domestic Usdcny options trading Financing Products.
Real Estate Development Loans. Fixed Assets Support Financing. Merging and Acquiring Loans. Electric Commercial Draft Discounting. Electric Commercial Draft Rediscounting. Account Management and Information Service. Supply Chain Financial Service. Diversified Service Usdcny options trading Supports.
Manufacturing and Sales Enterprise Solution. Household Appliance Enterprise Solution. Import and Export Enterprise Solution. Fast Foods Retail Enterprise Solution. Chain Operation Enterprise Solution. Account Payment Limit Control. Internet Banking for Cash Management. Investment and Financing Consultancy. Perennial Financial Advisory Service. Investment Banking Research Service. Innovative Investment Banking Services.
Financial Restructuring Advisory Service. Debt Financing Advisory Service. Custody Services for Securities Investment Fund. Custody Services for Corporate Annuity Fund. Custody Services for Insurance Assets.
Custody Services for Anxin Account. Custody Service for Occupational Annuity Fund. Custody Service for Bills. Safekeeping of Trust Assets. Comprehensive Pension Security Service. Other Trade Credit Facilities. Settlement Service for Small Enterprise. Investment Banking Advisory Services. Underwriting of Subordinated Debt Insurance Company. Regular Investment on Account-based Precious Metal. Agency Bond Trade and Settlement.
Spot Exchange Settlement and Sale. FX Forward Rate Agreement. Forward FX at Par. Forward FX Unilaterally Termination. Dual-currency Forward Exchange Sales and Settlement. FX Interest Rate Swap. Underwriting of Short-Term Bonds. Underwriting of Mid-Term Notes.