Indices

SET50 Index Futures

Mini SET50

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
Pre-open:
Morning session:
Pre-open:
Afternoon session:
09:15 - 09:45 hrs.
09:45 - 12:30 hrs.
14:00 - 14:30 hrs.
14:30 - 16:55 hrs.
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
(per day per account)

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
** This price does not include 7% VAT.

Pre-Trade Knowledge

Advantage of FUTURES Contract

  1. Buyers and Sellers have authority in setting price.
  2. No need of physical delivery but use cash settlement method instead.
  3. Use less investment money but make more profit.
  4. Able to make profit in both uptrend and downtrend.
  5. Able to trade by the investor self via internet trading.
  6. 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 S50H17 at 990 Point       10,000 baht
  Profit/loss adjustment 995 1,000 baht
+(200 X 5)
  11,000 baht
04/02/2009 Profit/loss adjustment 985 -2,000 baht
(-200 X 10)
  9,000 baht
05/02/2009 Profit/loss adjustment 970 -3,000 baht
(-200 X 15)
  6,000 baht
06/02/2009 Deposit additional margin     +4,000 baht 10,000 baht
  Sell S50H17 at 995 baht   5,000 baht
(200 X 25)
  15,000 baht

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.
MTS Gold Futures co., Ltd.
121/19 The Old Siam Plaza 1st Floor Pahurat Road, Wangburapapirom Sub-District, Pranakorn District, Bangkok 10200 Thailand
Copyright © 2014 MTS Gold Future. All right reserved