Trading KOSPI option contract just like a futures contract

Discussion in 'Index Futures' started by joesan, Oct 17, 2005.

  1. joesan


    Kospi 2000 future/option contracts are among the most liquid & volatile markets in the world . But limited by the low leverage (6.6:1) required by the exchange, one may find trading kospi futures contract is not efficient enough for your capital, although this market moves frequently and drastically during the sessions. I do not know whether it is due to this factor that kospi option contracts rises to be the most liquid one in the world, as option contract requires much less margin and kospi options is so liquid the spread is just one tick. I am in the time zone next to Korea, so I am looking into the kospi markets nowadays. I do not know if there are some Kospi traders on the ET bbs, if so , I have a question for you: what is the best option contract to daytrade in a way you trade a futures contract ( I mean, bet on directional movement), is that the one at-the-money ? And what is the contract to use, call option or put option ?
  2. Does anybody out there trade backspreads with KOSPI options? When IB gets the contact I am thinking about implementing that strategy. Is there anything non-intuitive that you wish someone told you before you stared trading.....etc.
  3. def

    def Sponsor

    strikes with nominal prices $3 and less trade in penny increments and are most active. The OTM strikes are most active.
  4. milstar


    ...Is any broker ,pure agent present ? Or all trading controlled from principal's/trading against clients order/

    your respectfully milstar
  5. can't wait to have a decent look at the KOSPI futures, there in my timezone. i think there so liquid and volatile because korea is the online gaming capital of the world, back in my counterstrike days, all the good players were from korea and thats where the big tournements are held, so i think there must be a lot arcades full of young kids over there. i hope IB makes the RT's like around $5 USD to attract a lot of volume which i think it will.

    does anyone want to post a intraday chart of the KOSPI?, i cant find one anywhere on the net.
  6. milstar


    IB suspect to have market making activities -trading for proprietary account against client order

    Best wish milstar
  7. def

    def Sponsor

    you suspect wrong. the activities are independent.
  8. Hope it works, it's from Yahoo.

    Regarding the trading craze in Korea...I heard about that,too. On Korean tv, lessons in technical analysis are supposed to be as normal as the weather news in theUS/Europe...
    You may want to read the following article:


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  9. gotta love those gaming fanatics.....thanks for that marsup, do you know what the spread is on the KOSPI futures contract and what is the daily contract volume?
    #10     Oct 18, 2005