Derivatives become a new option for equity investors

Applicants need hefty cash reserves and have to pass exams before being able to trade

Brokerages in the Chinese mainland began taking applications to open equity options trading accounts on Monday, with investors looking for a new way to hedge risk, analysts said.

But there will not be many eligible users initially, said Vincent Zhao, a senior official with a State-owned brokerage based in Shanghai. Applicants must have at least 500,000 yuan ($80,645) in cash and shares in a single trading account and pass three exams before they can trade stock options.