Beginner’s Information for Trading

Beginner’s Information for Trading

Beginner’s Information for Trading

Beginner’s Information for Trading

Beginner’s Information for Trading

Equity instruments are securities issued to investors to raise funds for the company. Equity can be separated into several categories such as common equitystock, preferred stock, and warrants.

Types of Equity Instruments

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Common Stock An instrument showing claim in the company. Common stock holders have voting rights and are eligible to dividend payments (in relation to the percentage of shares held). The amount of dividend is subjected to annual performance and dividend payment policy.
Preferred Stock An instrument showing claim in the company like common stock with difference in having a higher claim to earnings and assets in the events of liquidation. The dividend paid is also guaranteed and fixed at a pre-agreed rate which maybe higher or less than the dividends paid to common stock holders.
Warrant An instrument issued to investors for the rights to purchase new equity issued at a fixed price, amount, and timeframe.
Unit Trust An instrument issued by asset management companies to raise capital for funds. The fund will invest in designated assets and the unit trust holders will hold ownership in the fund along with dividends, interest payment, and rights arising from the investment in the designated asset.
Non - Voting Depository Receipt : NVDR An instrument issued and offered by Thai NVDR Co., Ltd. with features similar to depository receipt. NVDR holders do not have voting rights.
Depository Receipt : DR A instrument issued and offered by Siam DR Co., Ltd. (a company in the SET group). Investors will receive the same rights as directly investing in the underlying company such as dividend rights for common stocks. DRs have a finite redemption period. The owner of the rights will need to have Thai Nationality and cast their votes through Siam DR Co., Ltd. only.

Equity Instruments Available for Trading

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Equity Instrument
Common Stock
Preferred Stock
Warrant
Unit Trust
(Non - Voting Depository Receipt : NVDR)
Depository Receipt : DR)

Remark :

  • Opening time is randomized from 9.55-10.00 for the morning session and 14.25-14.30 for the afternoon session. The closing time is also randomized from 16.35-16.40.
  • Unmatched orders outstanding until the market is closed will be cancelled automatically.
  • Off-hour trading orders can be placed after 16.45. The orders will be submitted on the next trading day.

The Stock Exchange of Thailand has set the Bid and Offer for Main Board at a minimum of 100 shares (units) and increasing in 100 shares. For example, to buy AAA shares at THB 5 for 100 shares will equal the price of THB 500. However, there is an exception of stocks closing over THB 500 for the past 6 consecutive months can be traded at a minimum of 50 shares (units). The Stock Exchange of Thailand will make an announcement for such stocks.

Limit Price Order

  • Limit Price Order is an order to buy or sell at a specified price.
  • Unmatched quantities after 17.00 will be cancelled automatically.

ATO (At the Open) / ATC (At the Close)

  • At-The-Open Order (ATO): An order to buy or sell a stock at the session’s opening price. ATO orders are allowed during pre-open sessions (morning and afternoon).
  • At the Close Order (ATC): An order to buy or sell a stock at the closing price. ATC orders are allowed only during pre-close sessions.
  • ATO and ATC orders contain first-matching priority over limit-price orders. Unmatched portions of ATO and ATC orders will be automatically cancelled by the system.

MP (Market Price)

  • A market price order is an order to buy or sell a stock at the best available price.
  • Market price matching for buying orders will be matched at the lowest offer price (first offer) while the market price matching for selling orders will be matched at the lowest bid price (first bid).
  • Unmatched quantities will be matched at the next best available price.

IOC (Immediate or Cancel)

  • An order to buy or sell a stock immediately at a specific price (limit order).
  • For any remaining portion of the trade which is unmatched will be cancelled after 17.00.

Limit Price Order

  • Limit Price Order is an order to buy or sell at a specified price.
  • Unmatched quantities after 17.00 will be cancelled automatically.

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trade-symbol-xd Excluding Dividend Investors purchasing the stock during the time of XD sign are exempted from dividend payments.
trade-symbol-xd Excluding Rights Investors purchasing the stock during the time of XR sign are exempted from right issuances.
trade-symbol-xd Excluding Warrant Investors purchasing the stock during the time of XW sign are exempted from warrant issuances.
trade-symbol-xd Excluding All Investors purchasing the stock during the time of XA sign are exempted from all rights announced by the company.
trade-symbol-xd Excluding Benefit Investors purchasing the stock during the time of XB sign are exempted from other benefits.
trade-symbol-xd Excluding Meeting Investors purchasing the stock during the time of XM sign are not eligible to participate in the shareholder meetings.
trade-symbol-xd Trading Halt Trading in a security is halted for a maximum period of one trading session.
trade-symbol-xd Trading Suspension Trading in a security is being suspended for more than one trading session.
trade-symbol-xd Notice Pending SET is awaiting the disclosure of additional information from the issuer, or the information which has been received is incomplete or unclear.
trade-symbol-xd Notice Received Sufficient disclosure of the additional information, as requested by SET, has been made by the issuer.
trade-symbol-xd Non-Comliance The securities of a listed company are not in compliance with listing criteria and regulations, and may be delisted.

The Stock Exchange of Thailand has requested for Bid and Offers on the Main Board to specify the quantity of stocks during pre-opening and pre-closing hours. Investors sending ATO or ATC orders will be ranked by price and best time to calculate opening and closing price in following the steps listed below.

  1. The price that generates the greatest executable volume.
  2. If there is more than one such price at which there is maximum executable volume, the price with minimum unexecuted volume (“minimum imbalance”) will be chosen.
  3. If there is more than one price with minimum imbalance as described in (2) above, the market pressure on the side of the book with the minimum imbalance determines the execution price.
    1. If all the imbalances are on the buy side, there is a greater demand to buy the security and prices are likely to go up. The highest possible limit prices is therefore used as the auction price.
    2. If all the imbalances are on the sell side, there is a greater demand to sell the securities and prices are likely to go down. The lowest possible limit price is therefore used as the auction price.
    3. For each price level, if the aggregate buy volume and aggregate sell volume are equal (no imbalance), the potential auction price that is closest to the reference price** (usually the last traded price) will be chosen.
    4. If the imbalances are on both the buy and sell sides, select the two prices nearest to the price level where the imbalance changes sign. Between those two prices, the one closest to IPO price is used as the auction price. If no IPO price is available, then the higher price will be used.

Please be noted that the system will rank ATO/ATC as follows.

  • Bid ATO/ATC: Maximum of the highest Big + 1 tick and highest Offer.
  • Offer ATO/ATC: Minimum of the lowest Offer + 1 tick and lowest Bid.

An NVDR, or non-voting depository receipt, is a new trading instrument issued by Thai NVDR Co., Ltd (a subsidiary of SET)

The main purpose of NVDRs
  1. is to stimulate trading activities in the Thai stock market and offered as an alternative to foreign investors under the foreign ownership restrictions.
  2. Investors holding NVDRs will receive the same financial benefits (i.e., dividends, right issues or warrants) as investing directly in the company's shares with an exception of not having voting rights. NVDRs can be traded on the Stock Exchange of Thailand like any other instruments using the same trading procedure.

Fundamental information for investing in derivatives instruments.

Derivatives trading is similar to equity trading where the investor can send orders through a securities broker who is a member of the Thailand Futures Exchange (TFEX). The order will be placed to the Thai Futured Exchange and matched through an automatic trading system.

When the order is matched, the system will send details of the confirmation to Thailand Clearing House (TCH) to settle the payment. TCH will mark-to-market the derivatives on daily basis to settle any balances. The gain and loss from the orders will occur on the next day after the order has been placed (T+1). The summary of trading in TFEX is illustrated below.

  1. Open a derivatives account with your broker.
    **Derivatives account can be used to trade all products in the market.
  2. Daily Mark-to-Market.
  3. Add or remove collateral.
  4. Consistently monitor your positions for any adjustments required.

Products Offered on TFEX

SET50 Index Futures

SET50 Index Futures is calculated on a 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 Futures is the agreement between the buyer and seller agreeing to buy/sell the SET50 Index at the exercise price within the expiration period.

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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 Limit ±30% of the latest settlement price
Trading Hours
Pre-open:
09:15 - 09:45 hrs.
Morning session:
09:45 - 12:30 hrs.
Pre-open:
13:45 - 14:15 hrs.
Afternoon session:
14:15 - 16:55 hrs.
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 only.
Exchange Fee THB 7.1 per contract collected from both sides.
Commission Fee Not specified by TFEX and can be freely negotiated.

Single Stock Futures

Sector Index Futures is a futures contract with sector index as an underlying. Key investment highlights include the opportunity to trade or hedge key sectors effectively as the sectors may grow differently from the overall economic conditions. Sector Index Futures is an instrument designed to help investors manage sector rotation and manage their portfolio to reflect the chosen sectors and can be used as hedging instruments in economic downturns. There are currently 5 underlying sectors available for trading: Banking (BANK), Information and Communication Technology (ICT), Energy and Utilities (ENERG), Commerce (COMM), and Food and Beverage (FOOD).

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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
Pre-open:
09:15 - 09:45 hrs.
Morning session:
09:45 - 12:30 hrs.
Pre-open:
13:45 - 14:15 hrs.
Afternoon session:
14:15 - 16:55 hrs.
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 only.
Exchange Fee (per contract) THB 20 THB 5 THB 10 THB 10 THB 5

Single Stock Futures

Single Stock Futures or SSFs is a futures contract with underlying assets announced by TFEX. Investing in Single Stock Futures generally requires only 5-20% collateral of the underlying asset’s price. There are opportunities to make profit in both bullish and bearish markets. Investors can use Single Stock Future as a speculation or hedging tool.

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Underlying Asset Listed securities in SET which meet TFEX listing criteria.
ชื่อย่อสัญญา ชื่อย่อหุ้นอ้างอิง
Contract Size 1,000 shares per contract
Contract Months March, June, September, December up to 4 nearest quarters
Minimum Price Fluctuations THB 0.01
Exercise Price The range of each exercise price shall be 25 points where the calculation will be completed every day prior to the trading hours. There will be 1 At-the-money series with no less than 2 series of In-the-money and Out-of-the-money series available.
Price Limit ± 30% of the previous day settlement price
เวลาซื้อขาย
Pre-open:
09:15 - 09:45 hrs.
Morning session:
09:45 - 12:30 hrs.
Pre-open:
13:45 - 14:15 hrs.
Afternoon session:
14:15 - 16:55 hrs.
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 volume weighted average value of the underlying share trading transaction during last 15 minutes and at the closing on the last trading day, rounded to the nearest two decimal points.
Settlement Method No delivery, cash settlement only.
Exchange Fee Price < 100 THB : THB 0.5 per contract collected from both sides.
Price > 100 THB : THB 5 per contract collected from both sides.
Commission Fee Not specified by TFEX and can be freely negotiated.

10 Baht Gold Futures / 50 Baht Gold Futures

Gold Futures a futures contract with gold as an underlying asset and settled in Thai Baht. The characteristic of gold price movement that do not correlate with the equity market makes gold futures a very interesting investment option.

Currently, TFEX offers 2 types of gold futures as follows:

  1. 10 Baht Gold Futures
  2. 50 Baht Gold Futures
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Item 10 Baht Gold Futures 50 Baht Gold Futures
Underlying Asset Gold Bullion with a purity of 96.5%
Ticker Symbol GF10 GF
Contract Size 10 Thai Gold Baht
(1 Thai Gold Baht = 15.244 grams)
50 Thai Gold Baht
(1 Thai Gold Baht = 15.244 grams)
Contract Months 3 nearest even month : February, April, June, August, October, December
Price Quotation Baht per one baht-weight of gold
Minimum Price Fluctuations THB 10 (or THB 100 per contract) THB 10 (or THB 500 per contract)
Price Limit Initial price limit is ±10% from the latest settlement price. If traded price reaches the limit, trading will be halted for a certain period announced by TFEX. After trading resumes, the price limit will be expanded to ±20% of the latest settlement price.
Trading Hours
Pre-open:
09:15 - 09:45 hrs.
Morning session:
09:45 - 12:30 hrs.
Pre-open:
13:45 - 14:15 hrs.
Afternoon session:
14:15 - 16:55 hrs.
Pre-open:
18.45 - 19.00 hrs.
Night session:
19.00 - 23.55 hrs.
Speculative Position Limit Exchange may announce the position limit as it deems appropriate.
Last Trading Day The business day immediately preceding the last business day of the contract month. The trading of expiring contract will be ceased at 16:30 hrs. (local time) on Last Trading Day.
Final Settlement Price

The Final Settlement Price shall be calculated on the basis of the LBMA Gold Price AM price published by ICE Benchmark Administration Limited on the last trading day and the foreign exchange rate for Baht to US dollar announced by TFEX on the last trading day, after conversion for weight and fineness.

The formula for its calculation is as follows: = LBMA Gold Price AM x (15.244/31.1035) x (0.965/0.995) x (THB/USD)

Note:

  • 1 troy ounce = 31.1035 grams
  • 1 Thai Gold Baht = 15.244 grams
  • LBMA Gold Price AM is based on 0.995 gold
  • The underlying of gold futures contract is 0.965 gold
  • Price per one baht-weight of gold (2 decimal points)

Disclaimer:

ICE Benchmark Administration Limited makes no warranty, express or implied, either as to the results to be obtained from the use of the LBMA Gold Price and/or the figure at which the LBMA Gold Price stands at any particular time on any particular day or otherwise. ICE Benchmark Administration Limited makes no express or implied warranties of merchantability or fitness for a particular purpose for use with respect to Gold Futures.

Settlement Method Cash Settlement
Exchange Fee THB 7 plus the licensing fee per contract per side THB 35 plus the licensing fee per contract per side
Commission Fee Not specified by TFEX and can be freely negotiated.

USD Futures

TFEX has arranged for USD Futures to provide investors with a tool to manage currency risk especially for entrepreneurs in the Export and Import sector. Investors can also use USD Futures to enhance portfolio return and as hedging instruments.

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Underlying Asset US Dollar
Ticker USD
Contract Size 1,000 USD
Settlement Months 3 nearest consecutive months plus the next quarterly months (March, June, September, or December)
Price Quotation The price is quoted in term of Baht per 1 US Dollar (with 2 decimal points)
Minimum Price Fluctuations Tick size is 0.01 Baht (10 Baht per contract)
Transition period of the highest price each day ±2% from the latest settlement price.
Trading Hours
Pre-open:
09:15 - 09:45 hrs.
Morning session:
09:45 - 12:30 hrs.
Pre-open:
13:45 - 14:15 hrs.
Afternoon session:
14:15 - 16:55 hrs.
Last Trading Day The business day immediately preceding the last business day of the contract month. The trading of an expire-series shall be ceased on 11:00 hrs.
Final Settlement Price Calculated from the exchange rate announced by Thomson Reuters at 11:00 hrs (BKK time) on the last trading day (4 decimal points)
Settlement Method No delivery, cash settlement only.
Exchange Fee THB 1.00 per contract
Commission Fee Not specified by TFEX and can be freely negotiated.

3M BIBOR Futures

Interest Rate Futures are futures contracts with an interest-bearing instrument as the underlying asset. Interest rate futures are used to hedge against the risk of interest rates moving in an adverse direction or can be used to adjust portfolios in a time-effective window. Offering an effective portfolio management instrument.

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Underlying Asset 3M BIBOR
Ticker Symbol BB3
Contract Size THB 10,000,000
Settlement Months 2 nearest quarter months on March June September December cycle
Price Quotation In terms of index 100.000 - Yield (on annual basis with 3 decimal points)
Minimum Price Fluctuations Initial price limit is ±1.25% from the latest settlement price. Should tradedIf traded price reach the limit, trading will be halted for a certain period announced by TFEX. After trading resumes, the price limit will be expanded to +2.50% of the latest settlement price.
Trading Hours
Pre-open:
09:15 - 09:45 hrs.
Morning session:
09:45 - 12:30 hrs.
Pre-open:
13:45 - 14:15 hrs.
Afternoon session:
14:15 - 16:00 hrs.
Speculative Position Limit Net 2,000 contracts of 3M BIBOR Futures on one side of the market in any contract month or all contract months combined.
Last Trading Day The third Wednesday of the contract month and the trading of expiring contract will be ceased after 11:00 hrs. on the last trading day
Final Settlement Price Calculated from 3M BIBOR fixed at 11:00 hrs. (BKK time) as announced by Bank of Thailand on the last trading day (4 decimal points)
Settlement Method Cash Settlement
Exchange Fee THB 20 per contract per side
Commission Fee Not specified by TFEX and can be freely negotiated.

5Y Gov Bond Futures

Interest Rate Futures

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สินค้าอ้างอิง 5-Year Thai Government Bond with 5% coupon (semi-annual) represented by the Basket of Eligible Bonds
Ticker Symbol TGB5
Contract Size THB 1,000,000
Settlement Months 2 nearest quarter months on March June September December cycle
Price Quotation Price quoted by percent of par value with 2 decimal points.
Minimum Price Fluctuations 0.01 (or THB100 per contract)
Price Limit Initial price limit is ±2.50% from the latest settlement price. If traded price reach the limit, trading will be halted for a certain period announced by TFEX. After trading resumes, the price limit will be expanded to ±5.00% of the latest settlement price.
Trading Hours
Pre-open:
09:15 - 09:45 hrs.
Morning session:
09:45 - 12:30 hrs.
Pre-open:
13:45 - 14:15 hrs.
Afternoon session:
14:15 - 16:00 hrs.
Speculative Position Limit Net 10,000 contracts of 5Y Government Bond Futures on one side of the market in any contract month or all contract months combined.
Last Trading Day The third Wednesday of the contract month and the trading of series going to expire will be ceased after 16:00 hrs. (local time) on the last trading day
Final Settlement Price
  • Based on basket of eligible bond – A designated basket of Government Bonds with a minimum issuance size of ฿5,000 million and 4 - 6 year term to maturity on the first calendar day of the contract month.
  • Calculated from average yield quoted by primary dealers (4 decimal points)
Settlement Method Cash Settlement
Exchange Fee THB 10 per contract per side
Commission Fee Not specified by TFEX and can be freely negotiated.
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BID PRICE The price in buying orders sent to the trading system at a certain period of time.
The highest price will be ranked first (BEST BID).
ODD-LOT Orders with quantity less than 1 board lot will be traded on the Odd-Lot Board. The amount can range from 1 to 99 shares.
ODD-LOT BOARD Odd-lot is sub-trading board on the Stock Exchange of Thailand with a purpose to accommodate trading quantities that do not match a board lot. The trading price for the odd-lot board is subjected to the same ceiling and floor price as in the Main Board.
CEILING PRICE Maximum price of the stock for such trading day. It is capped at +30% of the previous closing price.
FLOOR PRICE Minimum price of the stock for such trading day. It is capped at -30% of the previous closing price.
SELLING SHORT or SHORT SELL A transaction where the seller sells a stock borrowed from a securities company with securities lending service. The short seller will need to deposit a margin with the securities company no less than the minimum required by SET. Proceeds from selling short will be kept with the securities company as collateral until the short seller returns the stock which can be prior or on the due date. During the period such stock has not been returned, all rights and benefits will be directed to the owner such as dividend rights, rights offering, or secondary subscription rights.

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