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<p>[QUOTE="desertgem, post: 1290865, member: 15199"]Here is the rules-regulations for the HKME. They imply that settlement is only physical, but if you read section 6 fully, you might see how they allow otherwise using approved exchanges outside of the HKME. So it seems to me at first reading that the HKME may not have margins if they truly do physical delivery for you the investor, but you have to pay the full price upfront. which is the same as the CME if you take physical. Since the approved exchanges are needed to sell or trade a contract before expiration, the fees might serve as the margins or worse.</p><p><br /></p><p>Also the delivery is in HK ( read the rules) unless one specifies delivery by a separate company. Might be handy for Asian investors who want physical, but not others. If I wanted to buy futures directly, I would not consider the HKME. But here are their rules, make one's own decisions.</p><p><br /></p><p>Jim</p><p><br /></p><p><a href="http://www.hkmerc.com/en/rules_regulations/hkmex_rulebook/index.html" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.hkmerc.com/en/rules_regulations/hkmex_rulebook/index.html" rel="nofollow">http://www.hkmerc.com/en/rules_regulations/hkmex_rulebook/index.html</a>[/QUOTE]</p><p><br /></p>
[QUOTE="desertgem, post: 1290865, member: 15199"]Here is the rules-regulations for the HKME. They imply that settlement is only physical, but if you read section 6 fully, you might see how they allow otherwise using approved exchanges outside of the HKME. So it seems to me at first reading that the HKME may not have margins if they truly do physical delivery for you the investor, but you have to pay the full price upfront. which is the same as the CME if you take physical. Since the approved exchanges are needed to sell or trade a contract before expiration, the fees might serve as the margins or worse. Also the delivery is in HK ( read the rules) unless one specifies delivery by a separate company. Might be handy for Asian investors who want physical, but not others. If I wanted to buy futures directly, I would not consider the HKME. But here are their rules, make one's own decisions. Jim [URL]http://www.hkmerc.com/en/rules_regulations/hkmex_rulebook/index.html[/URL][/QUOTE]
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