Difference between kospi futures and kospi options?

Discussion in 'Options' started by siki13, Jul 15, 2006.

  1. siki13

    siki13

    I dont know nothing about options ;call put straddle those
    terms mean nothing to me
    So i must ask do i have to know something specific about
    daytrading kospi options as oppose to kospi futures
    I am pure TA daytrader and obviously always flat on the end of trading session.
     
  2. siki13

    siki13

    Come on people,just the simple beginner question
    Do i have to know something specific about daytrading kospi
    options or is the same thing as trading kospi futures?
    Simple yes or no will do.
     
  3. yes
     
  4. siki13

    siki13

    Damn i thought answer will be no,care to elaborate what should be carefull about trading kospi options.
     
  5. If you are holding for less than a day and they have only a few days till expiry you may need to undersand how their value varies with time.

    But even if holding options with 20 days till expiry you do need to understand the relationship between their value and the current futures price to correctly calculate risk reward. Obviously its not linear for the far out of the money options that are most popular with kospi.

    That is enough though. Couldnt resist just giving you the yes you asked for :)
     
  6. Becareful the specs of options and futures. The options is 100000KRW multiplier instead of 500000KRW for futures. And the underlying is the spot index, not the futures.