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I. Derivatives Market's Legal Structure
II. Some abbreviation terms
III. The rates of warning and deposit using thresholds
When the rate of use of deposit of investors:
For example: On June 2, 2017, at 9:00AM, investor A traded 20 HNX30F1706 buying position at 130, with multiple = 1,000, IMrate = 9%. Then, the transaction price of the product fluctuate as follows:
Investors deposit before the transaction is 280,000, the threshold of use of deposit collateral is 100%.
|127||228.600||(60.000)||288.600||280.000||103,07% => Account is stopped trading (investors have to add deposit / pay losses to ensure the collateral rate)|
What is derivatives securities (DS)
DS is a type of financial instrument that is valued based on the value of one or more underlying assets. DS is reflected in many types of contractual arrangements, which stipulate the rights and obligations of the parties to the payment in cash, the transfer of underlying assets at a pre-agreed price at a certain point of time in the future.
The underlying assets of DS are divided into 02 types:
Who uses derivative securities?
|Comparison criteria||Hedging (Hedgers)||Speculators||Arbitrageurs|
|Purpose||Preventing price volatility risks||
|Risk appetite||Risk aversion||Accept high risk|
||Usually a financial institution, business organization on the DS market|
|Position||Underlying assets and Derivative Securities (concurrently)||Derivative securities||
What are the basic types of DS contracts?
What are some differences between Basic market and Derivatives Market?
|Content||Spot market||Derivatives market|
|Basic features||Spot delivery||Delivery in the future|
|Listing/cancel listing method||According to the request Issuers and meet SSC/exchanges regulations||Automatic based on Exchanges’ regulation|
|Get trading results from Exchanges||Send 1 time after the end of trading day||Send each transaction in real time immediately after the transaction is matched|
|Swap position||N/a||Immediately after receiving transaction results|
|Offset position||N/a||Automatic for regular accounts, as required for blended accounts|
|Settlement of payment obligations||Effective in the morning T + 1 for bonds; Morning T + 2 for stocks and fund certificates||Effective on the afternoon of the T day for position profit/loss position payments, maturity payment in cash; T +3’s morning for maturity payment of material transfer of bond's FC|
|Payment||T+1 for bonds; T+2’s afternoon for stocks, fund certificates||T+1 morning for position profit/loss position payment; T+3 for material transfer payments|
|Deposit||100% money, 100% of the sold stock||According to the initial deposit level determined by the CM, which guarantee is not lower than the required amount of VSD and the maintenance deposit value calculated by VSD for each account.|