Derivatives FAQ

How many ways can I trade derivatives with KBSV?

Via telephone – Hotline number: (+84) 24 7303 5333

Via website online account at: http://derivative.kbsec.com.vn/

Via mobile trading: KB-MobileDS

Via KBSV’s branches at the following addresses:

HO branch: Level G, Sky City Tower, 88 Lang Ha, Dong Da, Hanoi.
HN branch: Level 1, Office Building, 5 Dien Bien Phu, Ba Dinh, Hanoi
HCM branch: Level 2, TNR Tower Nguyen Cong Tru, 180-192 Nguyen Cong Tru, District 1, Ho Chi Minh
SG branch: Level 1, Saigon Trade Center, 37 Ton Duc Thang, Ben Nghe Ward, District 1, Ho Chi Minh City

How to I join and trade derivatives?

To join in and trade derivatives, Investors need to open an account with KBSV via one of the following channels:

Via telephone – Hotline number: (+84) 24 7303 5333

Open account online here

Via KBSV’s branches. Addresses are as follows:

HO branch: Level G, Sky City Tower, 88 Lang Ha, Dong Da, Hanoi.
HN branch: Level 1, Office Building, 5 Dien Bien Phu, Ba Dinh, Hanoi
HCM branch: Level 2, TNR Tower Nguyen Cong Tru, 180-192 Nguyen Cong Tru, District 1, Ho Chi Minh
SG branch: Level 1, Saigon Trade Center, 37 Ton Duc Thang, Ben Nghe Ward, District 1, Ho Chi Minh City

Our professional team of Brokers will contact you directly to assist with any request to open account, to trade or to answer any inquiries you may have. Thank you very much for choosing KBSV’s services and to continue to do so in the future!

When trading VN30 Index Futures with KBSV, how to I know the exact maturity date of my contract. Additionally, on that date how do you calculate my profit/loss position?

In regards to VN30 Index futures, the maturity date is set to be the third Thursday of the maturity month. When you trade with KBSV, please note that there is a difference in clearing method between trading shares and futures. In trading Index futures, you would need daily clearing of your derivatives account. Hence during the effective period of the contract, you will see daily changes in your derivatives account according to the reference price of respective Index futures.

However, on the maturity date, please note the following payment method characteristic:

For example: Let’s assume you have entered in a long position of VN30 Index futures: VN30F1903 with a set maturity date on 21^st March, 2019 and its strike price is 920.
On 21^st March 2019 here are the information:

The closing price of this contract is 925.0
The ATC closing price of VN30 Index is 926.09

In this particular situation, if you place a reverse order to crystalize your position, the closing price of futures contract will be used, in this case 925. However, if you do not take any action to close your position, yours will be settled based on the ATC closing price of VN30 Index which is 926.09

What benefits do I receive when trading derivatives?

When trading, investors have financial instruments for maximizing the following purposes:

Hedging (when investment portfolio includes underlying as well as derivatives to hedge price fluctuations)
Speculation (due to the high leverage characteristic of derivatives, investors can bet on the one-way fluctuation up or down of the underlying asset.
Arbitraging (If investors see that there is a difference in market valuation of derivatives, investors can utilize it to make profits)

Quite different with securities, investors have the right to short sell derivatives, which allows him/her to crystalize profit at T0 without needing to wait for cash in waiting to return by placing a reverse order to previous order.

Futures and covered warrant are products standardized by the HNX and HSX stock exchanges hence high liquidity and low risk

How is the price of CW impacted when business events happen?

During the business events, the price of CW in the market is not affected. However, the exercise price and the conversion rate of CW will be adjusted. The adjustment method is specified in the prospectus of the issuer.

How is the payment’s capacity of the issuer?

According to Circular No. 107/2016/TT-BTC, prior to issuing the obligations’ certificate of the issuers as follows:

Deposit is utilized for ensuring a minimum payment of 50% of the value of the CW to be issued, these assets must be deposited with the bank during the duration of the CW.
The issuer must daily execute the risk management of the CW’s quantity and report to HSX.

Could I sell CW before the expiration date?

In order to close profit before the expiration date, investors can trade on the HSX via KBSV by selling the call –CW (the transaction is the opposite of the previous transaction).