IB - date for KOSPI futures contract please?

Quote from zf trader:

After a quick bit of research I can't find any stupid rules like cancellation fees etc. Does anybody know of such snags that I should be aware of?
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no cancel fees. also keep in mind that there are no bust rules. if you're trading the front month options that is not an issue due to the depth and liquidity. longer term it could be as there are no market makers and no quote request functionality.

there are some rules that hopefully won't pertain to our clients which we'll monitor from behind the scenes.
 
Quote from def:

I hear rumors that CFTC approval is imminent and if/when that occurs, US residents can trade it.
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I'm sure I said this before, but about 1 year ago some KOFEX officials came through Singapore and said they were pursuing CFTC approval, but approval was likely several months out at best.

That would make 'imminent' sound about right, but with regulators all bets are off.
 
Hi Def,

What are the Margin needs for K200-futures?
They are not yet on the WebSite (and I want to configure ButtonTrader for Korea as soon as possible)

Can you tell something about the Option-Margins as well?

Thanks
Hoi
 
Hoi, let me answer to your question. Maintenance margin for one future is about $8100. Initial is about $12,000. Options are 5 times smaller contracts, so margin will be more reasonable. It is really hard to tell exactly what options margin is because it is all risk-based. Those who like spreads will enjoy it.
 
Quote from ids:

Hoi, let me answer to your question. Maintenance margin for one future is about $8100. Initial is about $12,000. Options are 5 times smaller contracts, so margin will be more reasonable. It is really hard to tell exactly what options margin is because it is all risk-based. Those who like spreads will enjoy it.
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Oops, that's quite an expensive contract...No wonder why the Options are so popular...

I understand that Option margins, are more complex.

Thanks for your quick answer.
 
If you want to trade directly, you need to register for an Investor ID with the Korean regulators. When you place an order, your ID must be included on the trade record (Similar to "Tag50" at the CME)

Also, you cant take Korean Won out of Korea. To transfer any profits you have to convert to foreign currency first.
 
Quote from zf trader:

The thing that I think I will like best about the KOSPI is the the volume is in the options instead of the future. When trading most contracts I like to be long gamma (options) and trade the future to keep delta neural. The problem with this is that theta (time value)is always working against me. By by hedging delta with short options I can hedge my theta risks and still be trading a high volume contract.
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could you elaborate the mechanism you mentioned here ?
 
The technique is called a backspread. If you do a search for it here and find something by options coach read it as he can explain it much better than I.

A backspread involves selling an at the money option and using the proceeds to buy out of the money options. Ideally you will have sold more time value than you bought and be delta neutral. However as the market moves positions must be adjusted to stay delta neutral. I have had success with it in the past with QQQQ options but not being able to have open orders on both sides of the market made it tough to make bigger profits.
 
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