Getting Started with TFEX

Contract Specification

Equity Index Futures

Market Capitalization Weight approach using the stock prices of the top 50 listed companies selected by SET in terms of large market capitalization, high liquidity.

SET50 Index as the underlying asset. The buyer of a Long position has the right, but not the obligation, to buy or sell SET50 Index at a specific price on or before a certain date to the buyer of a Short position.

Single Stock Future

SSF is a futures contract with underlying asset announced by TFEX. Investing in SSF generally requires only 5-20% collateral of the underlying asset’s price.

Metal Futures

A futures contract with metal (99.90% purity) as an underlying asset and settled in THB.

Currency Futures

The future contracts with foreign currency exchange rate as the underlying asset. Currency futures is a tool that helps traders manage their foreign exchange risk.

Start investing in TFEX with KS

Online Account Opening Derivative Derivative Document

Open an account online

Approval within a business day
(Only for customers who have )

Business hours: Monday to Friday, 8:30 AM – 5:00 PM.

Requests made outside business hours will be approved on the next business day.

You can place investment collateral through 3 available channels.

Bill Payment ODD ATS

( Bill payment (Mon–Fri, 8:30–19:00) will instantly increase your buying power.)

1. Invest online by yourself

1.1 Streaming

1.2 Log in “ KS Trade

www.kasikornsecurities.com

2. Investment Advisor

02-7960562 , 02-7960819

KS_TFEX@kasikornsecurities.com

Documents Required for Account Opening

Account Opening Application Form
(Includes customer information, investment suitability assessment, personal data management consent, and declaration of U.S. person status/non-U.S. person status)
Representative Appointment Agreement for Futures Trading and Risk Disclosure Statement
(Risk Disclosure Statement for Futures and Options Trading in the Derivatives Exchange)
*W-9 or W-8BEN
Supporting Documents for Account Opening (with certified true copies)
- Original national ID card (for identity verification at the company branch)
- One copy of the valid national ID card (front and back)
- One copy of legal name change document (if the name on supporting documents differs from the ID card)
- One copy of the bank passbook page used for receiving dividends and withdrawal payments
- One copy of financial evidence showing a total balance of not less than THB 100,000 (e.g., latest 3-month bank statements for savings or fixed deposits, latest securities/fund statements, recent salary slips, or other valid financial instruments such as government bonds or savings certificates)
- The company may request additional supporting documents for account opening as needed.

Note:
If you open multiple account types and the supporting documents overlap with those required for other account types, you may submit only one set of documents.

Start Trading with Streaming

Download the Streaming App

Start opening your investment account

Select a Derivatives Account

Select the futures contract you want

Get to Know Derivatives

Understanding Derivatives

Derivatives, or futures contracts, are a type of financial instrument created to allow a buyer and a seller to enter into an agreement to trade — or grant the right to trade — an underlying asset in the future. These contracts clearly specify the type of asset, specifications, price, quantity, settlement method, and expiration or delivery date.

In derivative trading, The buyer is said to hold a "Long" position,While the seller holds a "Short" position.Therefore, a derivative or futures contract does not have intrinsic value on its own. Its value is derived from the price of the underlying asset it is based on.

Types of Derivatives

In financial markets, derivatives are typically divided into four categories:

Futures, Options, Forwards, and Swaps.

In Thailand’s derivatives market (TFEX), only two types are actively traded:

Futures

A futures contract is an agreement between a buyer and a seller to buy or sell an underlying asset at a specified future date, with the terms of the trade — including the asset type, specifications, price, quantity, settlement method, and expiration date — agreed upon today.

Options

An option contract gives the buyer the right, but not the obligation, to either: Buy the underlying asset (Call Option), orSell the underlying asset (Put Option)

from the seller, at a predetermined price and quantity, within a specified period. The contract includes an expiration date. The seller is obligated to fulfill the contract terms if the buyer exercises the option, while the buyer has the right to choose whether or not to exercise that option.

Early Exit Before Expiration

Both Futures and Options do not require investors to hold the contract until expiration.

Investors may close their positions or exit the contract at any time through trading on the TFEX (Thailand Futures Exchange).

Highlights of Derivatives Trading

Advantages of Investing in Derivatives

1. Ability to Profit in Both Bull and Bear Markets

Low Capital Investment with High Returns (Leverage):
In a bull market, those holding a long position will profit, while those holding a short position will incur a loss.

2. In a bear market, those holding a short position will profit, while those holding a long position will incur a loss.

In the TFEX market, investors do not need to fully fund the contract's value. Instead, they are required to deposit a margin of only 5-20% of the contract's value (as set by TFEX). However, returns are calculated based on the full contract value. If the investment moves in the anticipated direction, investors can realize a high return compared to the capital invested. On the other hand, if the investment moves against the anticipated direction, the losses can be significant as well.

Investment Strategies in Derivatives

1. Profit Potential in Both Bull and Bear Markets:

In a bull market, those holding long positions will make profits, while those holding short positions will incur losses.
In a bear market, those holding short positions will make profits, while those holding long positions will incur losses.

2. Low Capital Investment with High Return Potential (Leverage):

In the TFEX market, investors are not required to fully fund the contract's value. Instead, they only need to deposit a margin of 5-20% of the contract's value (as set by TFEX). The returns, however, are calculated based on the full contract value. If the investment moves in the anticipated direction, investors can realize high returns relative to the capital invested. Conversely, if the market moves against the anticipated direction, the losses can also be significant.