Simple options FAQ

• What is the latest time I can open or close a position?

Simple Options generally support 24/7 RFQ and trading, but contracts approaching expiry are subject to a trading cutoff.Opening, adding to, partially closing, and fully closing positions are supported until 30 seconds before settlement. For example, for a contract that settles at 16:00 HKT on the expiry date, the trading cutoff is 15:59:30 HKT. After the cutoff:

• No new RFQs for opening, adding to, or closing positions will be accepted.

• Quotes that have not yet been confirmed or accepted by the system will become invalid.

• Reaching the confirmation page does not guarantee execution. The trade must be accepted by the system before the cutoff.

• Why can the opening and closing prices differ for the same underlying?

Opening and closing prices are obtained from separate RFQs and are not calculated directly from the historical opening price or the spot price shown on the page.Even for the same underlying, the actual quote depends on:

• Expiry date, strike price, and Call/Put type

• Buy or Sell direction

• Whether the action is opening, adding to, or closing a position

• Trade quantity

• Underlying price, volatility, time to expiry, and market liquidity at the time of quoting

• LP inventory, hedging costs, and quoted spread

• Whether a Sell Call is closed using USDT payment or stock conversion

In essence, opening and closing correspond to different underlying quote combinations. For example:

• A Long position is opened when the user buys an option from the platform, and closed when the user sells the option back to the platform.

• A Short position is opened when the user sells an option to the platform, and closed when the user buys the option back from the platform.

• When a Sell Call is closed using stock conversion, the quote also includes the option repurchase, stock conversion, quantity rounding, and any possible cash adjustment.

Therefore, even for the exact same contract, opening and closing correspond to opposite sides of the market and are generally affected by the bid/ask spread, so the prices are not guaranteed to be the same. This spread is part of the all-in quote and is not an additional fee charged after execution.

• Is the reference premium shown on the option chain the final execution price?

No. The price shown on the option chain is mainly for browsing and comparing contracts. The final execution price is based on the valid RFQ quote obtained and confirmed after the user enters the order panel.

• Why does the product support 24/7 trading, but sometimes no quote is available?

24/7 means that users can submit RFQs at any time. It does not mean that an executable quote is guaranteed for every contract at all times.Quotes may be temporarily unavailable in the following situations:

• The contract has entered the 30-second pre-expiry trading cutoff period

• Market liquidity is insufficient

• System maintenance or risk-control restrictions apply

• Corporate actions, trading halts, or market data abnormalities occur

• The platform-level or individual-underlying trading quota has been exhausted

• What happens if the quote expires, the quantity is changed, or the closing method is switched?

The original quote becomes invalid immediately, and a new RFQ must be requested and confirmed again.The system will not automatically replace the original quote with a new price and execute the trade on the user’s behalf.For a Sell Call, switching between USDT close and stock-conversion close also requires a new RFQ.

• If I already have a position and place a trade in the opposite direction, will it create an opposite position?

No. Each contract supports only a one-way net position.If a position already exists, a trade in the opposite direction will first be treated as Reduce-only, meaning it is used to reduce or close the existing position.The closing quantity cannot exceed the available quantity that can be closed.To establish a position in the opposite direction, the existing position must first be fully closed, after which a new position can be opened.

• After partially closing a position, will the average entry price of the remaining position change?

No.A partial close only calculates realized PnL based on the quantity closed in that transaction.The remaining position continues to use the original weighted average entry price. The closing price of the partial close is not used to recalculate the remaining position’s cost basis. Xstock option Q&A

• Why is the conversion price different from the spot price when closing a Sell Call using stock conversion?

The stock conversion price is based on the average settlement price during the 30 minutes before settlement. It is used to convert the USDT premium required to close the position into the estimated quantity of tokenized stock to be deducted.It forms part of the overall closing quote and is not the same as the latest spot trading price displayed on the page.The actual quantity deducted may also be affected by the stock’s minimum trading unit, rounding rules, and cash adjustments. The result shown on the closing confirmation page should be treated as final.

• When will the collateral assets be returned after closing a position?

After the closing trade is executed and settlement is completed, any unused USDT or tokenized stock corresponding to the closed quantity will be automatically returned from the Options Segregated Account to the Trading Account.If the transaction is still processing, in an UNKNOWN state, or subject to a settlement exception, the relevant assets will remain locked and will not be returned early.

• What happens if the final settlement price is equal to the strike price?

If the settlement price is equal to the strike price, the contract will still enter the automatic exercise or assignment process:

• For Long positions, the cash settlement amount will be 0.

• For Short positions, the corresponding USDT and underlying asset settlement will still be completed at the strike price.