Trading KOSPI option contract just like a futures contract

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

  1. Ok. I was looking at the wrong index. Now it makes more sense..
    Now Def, lets say I was long one contract and wanted to get net short one contract by selling two contracts with one hit of the button. In this instance would IB require the margin for the 2 contract sell ie twice the margin of one contract or would the margin reflect my net short position of one contract. That is to say would I need the money for one or two contracts to perform this maneuver on the futures...? Because obviously 1 contract of the sell simply closes the open position long which ordinarily wouldnt require the funds for a second contract to close the open order.
     
    #141     Feb 13, 2006
  2. And would the same rule apply to the options. The penny has finally dropped with me that the option is effectively much cheaper to trade because the spread is five dollars for a position in the futures that is 25.
     
    #142     Feb 13, 2006
  3. ie. option spread is approximately one fifth of the futures spread for the same sized position (ie 5 option contracts.. Am I reading this right.
     
    #143     Feb 13, 2006
  4. def

    def Sponsor

    1. margin would be required for the open position, thus 1 future.

    2. yes, options margins are portfolio based as well.

    3. I'm not clear on your wording so correct me if I misunderstand but let me try to explain....

    The multiplier for options is 100K so an option contract is 5x smaller than a futures contract.

    At the money and out of the money options are extremely liquid and options priced < $3 tick in pennies as opposed to futures which tick in nickels.
     
    #144     Feb 13, 2006
  5. Thanks Def.
     
    #145     Feb 14, 2006
  6. Def. I have another quick question... What exchange do the futures and options trade on? Is it still the KSE or did it move to the KOSDAQ? Also what are the requirements for exchange membership to get a front end to the exchange? Does it function in the same way as the CME in this regard? Can you lease a membership. Thanks..
     
    #146     Feb 17, 2006
  7. joesan

    joesan

    Is it possible to trade Kospi option from IB TWS option trader ?

    I type in k200 into the optiontrader, but it feedbacked " no option for underlying k200"
     
    #147     Mar 3, 2006
  8. def

    def Sponsor

    yes, add the index not the future.

    big game, I overlooked your question. I the KSE and Kosdaq are one and the same now, they merged. They go by the acronym KRX. http://sm.krx.co.kr/webeng/
    http://english.kosdaq.com/

    info on k200 can be found on the first link


    Korean futures/options are seeking CFTC approval. Until then, unqualified (whith is basically anyone but large institutions) US residents will not be able to trade them.
     
    #148     Mar 3, 2006
  9. joesan

    joesan

    Thanks,Def. Clear option trading interface indeed. Good job.
     
    #149     Mar 3, 2006
  10. joesan

    joesan

    Hi, Def.

    Does IB optiontrader display values of implied volatility & greeks for k200 options ? I can not find them now
     
    #150     Jun 15, 2006