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1. |
Please contact us at +66-2-658 8555 and leave your name and telephone number with us. Our sales representative will reach you and assist you of opening a futures account |
2. |
The Futures Account Opening Form |
3. |
The Futures Trading Agreement |
4. |
The Specimen Card |
5. |
Based upon your investor category, please attach the following documents |
Individual |
Corporate |
1. |
Certified copy of ID/Passport of client, beneficiary and/or related person (if any) and grantee (in case the client has P.O.A) |
2. |
Certified copy of house registration of client and grantee (in case the client has P.O.A) |
3. |
Certified copy of Tax ID |
4. |
Certified copy of past 3 months bank statement and the cover page showing client name and account number |
5. |
Letter of consent for debiting to client's bank account |
6. |
30 Baht duty stamp for agreement and derivatives trading agent appointment contract |
7. |
30 Baht duty stamp for each grantee in P.O.A |
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1. |
Certified copy of affidavit, memorandum and article of association, issued no longer than 6 months from request for account opening by Department of Development |
2. |
Certified copy of Power of Attorney |
3. |
Certified copy of Tax ID, VAT registration, and specific business tax |
4. |
Certified copy of financial statement with top 5 shareholder list, issued no longer than 1 year |
5. |
Certified copy of specific business |
6. |
Certified copy of ID/Passport of director in charge of derivatives trading |
7. |
Certified copy of ID/Passport of grantees |
8. |
Certified copy of board resolution of directors with respect to opening and operating futures trading account |
9. |
30 Baht duty stamp for agreement and derivatives trading agent appointment contract |
10. |
30 Baht duty stamp for each grantee in P.O.A |
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1. |
Individual investor is required to deposit a minimum of 100,000 Baht margin to begin the first transaction in TFEX market. |
2. |
Margin can be deposit to any one of the following major Thailand banks listed below, |
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| Bank name |
Account |
Kasikorn
Bank Pcl - Phaholyotin Road |
C/A 099-1-07300-0 |
Bangkok
Bank Pcl - Silom |
C/A 101-3-33010-3 |
United Overseas Bank (Thai) Pcl. - Sathorn |
C/A 047-1-03569-1 |
Siam
Commercial Bank Pcl Wireless Road |
C/A 049-3-11045-6 |
Krung
Thai Bank Pcl North Nana |
C/A 000-6-04577-4 |
Siam
City Bank Pcl Head Office |
C/A 001-1-14104-0 |
Bank
of Ayudhya Pcl - Ploenchit |
C/A 001-0-10883-5 |
Thanachart
Bank Pcl - Silom |
C/A 002-3-00097-4 |
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3. |
Please fax the bank slip to your sales representative after you finish the remittance. |
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| 1. Understanding the quotes |
a. Prices of single contract month and inter-month spread are quoted at TFEX
b. Symbol of single contract month
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| Symbol |
Underlying |
Contract Month |
Year of Expiration |
| S50Z06 |
S50 |
Z |
06 |
SET50 Index Futures expired in December, 2006 |
SET50 Index Futures |
December |
Year 2006 |
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| c. Symbol of inter-month spread |
| Symbol |
Underlying |
First Contract Month |
Year of Expiration of the first contract month |
Second Contract Month |
Year of Expiration of the second contract month |
S50Z06H07 |
S50 |
Z |
06 |
H |
07 |
Inter-Month spread of SET50 Index Futures between December 2006 and March 2007 |
SET50 Index Futures |
December |
Year 2006 |
March |
Year 2007 |
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| d. Contract of Contract Month |
F |
G |
H |
J |
K |
M |
N |
Q |
U |
V |
X |
Z |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
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| e. Example of price quotation |
i. |
Single Contract Month |
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ii. |
Inter-Month Spread |
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2. Order Routing
Order can be placed through telephone or the Internet (SETTrade)
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3. Types of Order
There are 4 major types of order and 5 contingent instructions. Contingent instruction may attach to major types of order providing versatile order execution choices |
Order Types (Single or Inter-Month Spread) |
Contingent Instructions |
Market Order |
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Limit Order |
IOC/FAK, FOK, GTC, GTD, Iceberg |
Stop Order |
GTC, GTD |
Stop Limit Order |
GTC, GTD |
Market Order: To buy at the best offers or to sell at the best bids.
Limit Order: To buy or to sell at a designated price or better.
Stop Order: To buy or to sell at market price when the market price reaches the designated price of the stop
order. The designated price of a buy/sell stop order has to set above/below the current market price.
Example: The market is traded at 500.00; a valid buy/sell stop order should be looked like as below,
| Order |
Instruction |
Trigger Condition |
Note |
Buy Stop |
Buy 1 S50Z06
@ 501.00 Stop |
Trade/Bid/Ask |
When market trades/bids/asks at 501.00, the order will turn into a market buy order |
Sell Stop |
Sell 1 S50Z06
@ 499.00 Stop |
Trade/Bid/Ask |
When market trades/bids/asks at 499.00, the order will turn into a market sell order |
Stop Limit Order: The combination of stop order and limit order. Similar to stop order, the stop limit order will be executed when the market price reaches the designated stop price. However, the stop limit order will not become a market when the stop price is triggered but will become a limit order to buy/sell at the designated limit price.
Example: The market is traded at 500.00; a valid buy/sell stop limit order should be looked like as below,
| Order |
Instruction |
Trigger Condition |
Note |
Buy Stop Limit |
Buy 1 S50Z06
@ 501.00 Stop 501.10 Limit |
Trade/Bid/Ask |
When market trades/bids/asks at 501.00, the order will turn into a limit order bids @ 501.10 |
Sell Stop Limit |
Sell 1 S50Z06
@ 499.00 Stop 498.90 Limit |
Trade/Bid/Ask |
When market trades/bids/asks at 499.00, the order will turn into a limit sell order offers @ 498.90 |
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1. Margin
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Initial Margin: the margin amount required to initiate trading for 1 futures contract. |
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Maintenance Margin: the equity amount that investor has to maintain at or above in order to maintain his/her open position
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Super Margin: the additional margin requirement that may apply when the market will close for more than 4 days (NOT includes Saturday and Sunday). The amount would be [Square Root of (T + 1) X Initial (Maintenance) Margin] |
2. Mark to Market
Everyday, the profit/loss of all open positions in investor account will be recalculated based on the settlement price of the trading day. Investor's account equity wills either increases or decreases resulting from marking to the market procedure.
3. Margin Call:
In the case that total equity in investor's account is lower than the maintenance margin, KGI will issue a margin call letter to investor. The investor has to either close out his/her open positions or deposit mare margin in order for his/her total equity increases to a level above the initial margin.
4. Forced-Close
Open positions in investor's account is forced to liquidate by KGI due to the following the reasons,
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Investor doesn't response to the margin call. If the margin call is issued on Day T, investor neither closes out open positions nor deposits margin into his/her account in the morning on Day T + 2 |
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Low margin: Investor's account equity is lower than 30% of total initial margin due to extreme averse market movement that goes against investor's open positions
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5. Cash Settlement
The procedure by which index futures contracts are settled. Because an investor cannot directly buy or sell an index, index futures contracts are cash settled by allocating a baht amount to each index point.
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1. |
The minimum withdraw amount is 10,000 Baht |
2. |
Fill out Margin Withdraw Application Form |
| 3. |
Certified signature |
| 4. |
Submit the application form to KGI before 2:00 PM |
| 5. |
The margin will be transferred to investor's bank account by next business day 3:00 PM. |
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