Heng Seng Index Options

[kingjelly]

Quote from def:

Not true in regards to the conversion, with IB, we don't require our clients to convert beforehand as well extend a margin loan.

Can US based accounts trade KOSPI options yet?

 

[kapw7]

Quote from FrankSlaughtery:

they are the highest vol options in the world - IIRC in order to trade them you must convert your currency into KRW

It's interesting that there is a huge retail base trading KOSPI, mainly ppl who try to gamble. There's also a recent paper where the authors claim that the options market (KOSPI 200) is inefficient -don't ask me about the maths:
www.wise.xmu.edu.cn/cean/download.aspx?id=342

That's only from a quick google search so take it fwiw. It also seems that the govenrment is trying to get rid of retail investors and invite more institutional western money, so maybe the inefficiency is not there anymore. Maybe someone who is actually trading those might want to comment.

 

[newwurldmn]

Quote from sle:

My general experience is that there is tons of opportunities in Asian indices, stand-alone as well as against the ETFs (e.g. FXI vs HSI). I am sure there is even more fun stuff to do in single names.

Problem is that, in general, you have to chose between having a life (i.e. my wife would kick my ass) and trading Asia.

Yeah. I've heard of some crazy quant strategies taht only work in Asia (because of the skew dynamics).

Can you trade single names in Asia? I thought the entire market was OTC.

 

[luisHK]

Quote from newwurldmn:


Can you trade single names in Asia? I thought the entire market was OTC.

You definetely can trade in companies listed on the HSI, but commissions and transaction taxes are a killer there if you trade stocks frequently