Thai
EngIndices
Sector Index Futures
Sector Index Futures is a futures contract with sector index as an underlying. Initially there will be a total of 5 underlying sectors available for trading: Energy and Utilities (ENERG), Food and Beverage (FOOD), Banking (BANK), Commerce (COMM) and Information and Communication Technology (ICT). Similar to the SET50 Index Futures, Sector Index Futures expand the set of tools available to help you manage sector rotation in a portfolio more efficiently. With these contracts, you can seek profits based on how you expect certain market sectors to perform or hedge your sector-related risk. These contracts give investor the ability to individually target and trade major sectors comprising the SET Index.
Sector Index Futures Contract Specification
Heading |
Contract Specification |
||||||
|---|---|---|---|---|---|---|---|
| Underlying | Sector Index computed and disseminated by the Stock Exchange of Thailand. Currently, there are 5 Sector Futures as following: | ||||||
| Banking | Information & Communication Technology | Energy & Utilities | Commerce | Food and Beverage | |||
| Ticker Symbol | BANK | ICT | ENERG | COMM | FOOD | ||
| Multiplier | THB 1,000 per index point | THB 10 per index point | |||||
| Settlement Month | March, June, September, December up to 4 quarters | ||||||
| Price Quotation | Sector index price | ||||||
| Minimum Tick Size (Tick Value) |
0.10 index point (or THB 100 per contract) |
1 index point (or THB 10 per contract) |
|||||
| Daily Price Limit | ±30% of the latest settlement price | ||||||
| Trading Hour |
|
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| Speculative Position Limit | Net 20,000 contracts in any sector futures contract on one side of the market in any contract month or all contract months 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 Sector Indices, rounded to the nearest two decimal points as determined by the exchange, and shall be the average value of the Sector Indices 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 Sector Index Futures
BANK Index Futues
No. of contract |
Commission rate (Baht/Contract) |
|
|---|---|---|
Via Markething Officer |
Via Internet |
|
| From 1st- 10th contract | 200.00 | 182.00 |
| From 11st - 40th contract | 160.00 | 146.00 |
| From 41st - 200th contract | 120.00 | 110.00 |
| From 201st contract onward | 100.00 | 92.00 |
ENERG Index Futues
No. of contract |
Commission rate (Baht/Contract) |
|
|---|---|---|
Via Markething Officer |
Via Internet |
|
| From 1st- 25th contract | 100.00 | 91.00 |
| From 26th - 100th contract | 80.00 | 73.00 |
| From 101st - 500th contract | 60.00 | 55.00 |
| From 501st contract onward | 50.00 | 46.00 |
COMM Index Futues
No. of contract |
Commission rate (Baht/Contract) |
|
|---|---|---|
Via Markething Officer |
Via Internet |
|
| From 1st- 25th contract | 100.00 | 91.00 |
| From 26th - 100th contract | 80.00 | 73.00 |
| From 101st - 500th contract | 60.00 | 55.00 |
| From 501st contract onward | 50.00 | 46.00 |
ICT Index Futues
No. of contract |
Commission rate (Baht/Contract) |
|
|---|---|---|
Via Markething Officer |
Via Internet |
|
| From 1st- 50th contract | 50.00 | 45.50 |
| From 51st - 200th contract | 40.00 | 36.50 |
| From 201st - 1000th contract | 30.00 | 27.50 |
| From 1001st contract onward | 25.00 | 23.00 |
FOOD Index Futues
No. of contract |
Commission rate (Baht/Contract) |
|
|---|---|---|
Via Markething Officer |
Via Internet |
|
| From 1st- 50th contract | 50.00 | 45.50 |
| From 51st - 200th contract | 40.00 | 36.50 |
| From 201st - 1000th contract | 30.00 | 27.50 |
| From 1001st contract onward | 25.00 | 23.00 |
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.
• Copy of ID card
• Copy of House Registration
• Statement or Book Bank Transactions in last 3 months.
• Copy of Book Bank (Only Kasikornthai Bank, Bangkok Bank, Krungthai Bank, and Siam Commercial Bank) - 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
Mark-to-Market
For your information regarding to profit or loss in your investment, TFEX will update your trade status in daily basis by adding fund to your margin account if you have profit on the contrary if you have loss, TFEX will deduct the amount of fund in your account.
- 5
Please be noted that you should recheck your account status to control risk and update your portfolio along with the market conditions.
