Thai
EngIndices
SET50 Index Futures
SET50 Index Futures is a futures contract on a underlying SET50 Index. It is calculated from the stock price of the top 50 listed companies on SET in terms of large market capitalization and high liquidity.
The multiplier of SET50 Index Futures will be reduced from THB 1,000 to THB 200 on May 6th, 2014 and all open positions prior to that date will be automatically increased by five times from May 6th, 2014 onwards.
SET50 Index Futures Contract Specification
Heading |
SET50 Index Futures | ||
|---|---|---|---|
| Underlying Asset | SET50 Index which is compiled, computed and disseminated by the Stock Exchange of Thailand | ||
| Ticker Symbol | S50 | ||
| Contract Multiplier | THB 200 per index point | ||
| Contract Months | 3 nearest consecutive months plus the next 3 quarterly months | ||
| Price Quotation | SET50 Index price | ||
| Minimum Price Fluctuations | 0.1 index point (or THB 20 per contract) | ||
| Price Limit | ± 30% of the latest settlement price | ||
| Trading Hours |
| ||
| Speculative Position Limit | Net 100,000 delta equivalent SET50 Index Futures contracts on one side of the market in any contract months of SET50 Index Futures and SET50 Index Options combined. | ||
| Last Trading Day | The business day immediately preceding the last business day of the contract month. Time at which trading ceases on Last Trading Day is 16:30 hrs. | ||
| Final Settlement Price | The final settlement price shall be the numerical value of the SET50 Index, rounded to the nearest two decimal points as determined by the exchange, and shall be the average value of the SET50 Index taken during last 15 minutes and the closing index value, after deleting the three highest and three lowest values. | ||
| Settlement Method | Cash Settlement |
Commission Rates for SET50 Index Futures
No. of contract
|
Commission rate (Baht/Contract) | |
|---|---|---|
Via Markething Officer |
Via Internet | |
| From 1st - 25th contract | 87.00 | 79.00 |
| From 26th - 100th contract | 67.00 | 61.00 |
| From 101st - 500th contract | 47.00 | 43.00 |
| From 501st contract onward | 37.00 | 34.00 |
Pre-Trade Knowledge
Advantage of FUTURES Contract
- Buyers and Sellers have authority in setting price.
- No need of physical delivery but use cash settlement method instead.
- Use less investment money but make more profit.
- Able to make profit in both uptrend and downtrend.
- Able to trade by the investor self via internet trading.
- There will be Marketing Officers (Brokers) to help in providing information for investment and following the market situation for the investors.
Margin Deposit in Futures Contract
Investors are required to deposit Margin with their respective broker before trading futures contract and there are following 3 types of margin.
- 1
Initial Margin (IM)
is the minimum equity required to initiate a futures position and equal to only 10% of underlying asset’s value.
- 2
Maintenance Margin (MM)
is a set minimum margin per outstanding futures contract that a customer must maintain in their margin account and equal to 70% of contract value.
- 3
Force Close (FC)
is the case when the margin level decrease to Force Close Margin Rate or 30% of contract value, the brokers have rights to close the account to cut loss instantly unless the investors can deposit additional funds to meet Initial Margin requirement within 1 hour.
Mark-to-Market
Date |
Transaction |
Closed Price |
Profit/Loss |
Transferred In/ Transferred Out |
Margin Amount |
|---|---|---|---|---|---|
| 03/02/2009 | Buy Gold Futures at 15,000 baht | 70,000 baht | |||
| Profit/loss adjustment | 15,080 baht | 4,000 baht
(80 X 50) | 74,000 baht | ||
| 04/02/2009 | Profit/loss adjustment | 14,800 baht | -14,000 baht
(280 X 50) | 60,000 baht | |
| 05/02/2009 | Profit/loss adjustment | 14,500 baht | -15,000 baht
(300 X 50) | 45,000 baht | |
| 06/02/2009 | Deposit additional margin | 25,000 baht | 70,000 baht | ||
| Sell Gold Futures at 15,050 baht | 27,500 baht
(550 X 50) | 97,500 baht |
3 Feb
Mr. A buys gold futures at 15,000 baht for 1 contract. After the price is at 15,080 baht, the market will Mark-to-Market to calculate profit/loss by comparing between closed price and buy price 15,080 -15,000 = profit 80 baht X 50 (1 gold futures contract is equal to 50 baht). Therefore, Mr. A will get profit 4,000 baht and whole margin amount is equal to 74,000 baht.
4 Feb
The price is lower to close at 14,800 baht. The calculated profit/loss is equal to 14,800 – 15,080 = (280*50) or loss 14,000 baht and the margin amount is equal to 60,000 baht.
5 Feb
The price is lower to close at 14,500 baht. The calculated profit/loss is equal to 14,500 – 14,800 = (300*50) or loss 15,000 baht and the margin amount is equal to 45,000 baht. Therefore, Mr. A is required to deposit additional margin 25,000 baht within the next day.
6 Feb
The price is lower to close at 14,500 baht. The calculated profit/loss is equal to 14,500 – 14,800 = (300*50) or loss 15,000 baht and the margin amount is equal to 45,000 baht. Therefore, Mr. A is required to deposit additional margin 25,000 baht within the next day.
Trading Steps
- 1
Register and open account with MTS Gold Futures with following required documents.
ο Copy of ID card
ο Copy of House Registration
ο Statement or Book Bank Transactions in last 3 months. - 2
Statement or Book Bank Transactions in last 3 months.
- 3
Send trading order to broker via telephone or trading by the investor self via internet trading.
- 4
For Mark-to Market,
if the investor gets profit, there will be transferred-in profit to the account. In contrast, if the investor gets loss, there will be transferred-out loss from the account.
- 5
To further deposit or withdraw margin,
if the investor gets loss until the margin is less than required maintenance margin, the broker will notify the investor to deposit additional margin to fill the initial margin requirement or called ‘Call Margin’. If the investor gets profit, the investor can withdraw the profit but the left money in account must not lower than the initial margin.
- 6
Frequently check the account status to evaluate and decide to adjust the investor’s status.
