Trading KOSPI option contract just like a futures contract

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

  1. TickJob

    TickJob

    #131     Feb 12, 2006
  2. TGM

    TGM

    Def,

    I have heard the CFTC is going to approve Kospi trading real soon for the states. I have heard this many times. But there has been so much bitching about the CFTC that they have restructured some things. And they are supposed to have things more streamlined. Let me know if you hear anything or when this happens.
     
    #132     Feb 12, 2006
  3. def

    def Sponsor

    I certainly will and I'm quite optimistic that it will come very soon but I'm not holding my breath. I've heard approval was imminent a number of times.
     
    #133     Feb 12, 2006
  4. TGM

    TGM

    Damn that was fast! Didn't realise you were online!!!!

    good deal!
     
    #134     Feb 12, 2006
  5. Def. Could you please tell us the multiplier value for the Kospi futures. The IB website states the multiplier as 500000 won which is 500 dollars. Is this correct?It sounds very high. Thanks...
     
    #135     Feb 12, 2006
  6. def

    def Sponsor

    That is correct, it is a big contract. The options are 100K KRW. Given the 1 tick increments and deep liquidity in the ATM and OTM markets, I'd suggest looking at the options over futures.
     
    #136     Feb 12, 2006
  7. Im actually really quite interested in trading these things. The moves seem good in contrast to the US markets. Is the option spread between the bid and ask one tick? What is the value of one tick in USD. Are the futures spreads 1 tick also? Thanks.
     
    #137     Feb 12, 2006
  8. def

    def Sponsor

    < 3 tick .01
    > 3 tick .05

    For options < 3 the spread is usually .01

    each tick (.01) is roughly $1

    The futures minimum tick is .05 and are 5x as large. (500K multiplier)
     
    #138     Feb 12, 2006
  9. So then is the future value one tenth of the index value like with the spiders because if it wasnt it would be a 600k contract which its obvioulsly not. ie is it 133.3 when the index is 1333 with each future point worth 500. Right?
     
    #139     Feb 12, 2006
  10. def

    def Sponsor

    The future is 1/5 the value of an option and is the same value of the indes. The full value is roughly 90K. Each future tick is .05 or roughly $25 per tick or $500 per point.
     
    #140     Feb 13, 2006