KOSPI options

[BlueHorseshoe]

Quote from ids:

To BlueHorseshoe:
IB commissions are published at
http://www.interactivebrokers.com/en/accounts/fees/commissionStockIndexOptions.php?ib_entity=llc

0.2% of option value
Minimum per order is KRW 1,000
Example: 10 Contracts @ KRW 0.75 Premium (KRW 100,000 Multiplier) = KRW 1,500
It is less then $1.5

Thanks ... this is hands down one of the major reasons why the options are so popular, and so liquid.

The contract is just built up front for liquidity.

 

[def]

Quote from LoosenUp:

Any idea what kind of volatility are these options traded at?

currently around 21-22 but it can change dramatically and quickly.

 

[zf trader]

What would kids who grew up as hard core gamers do with there money when they get older in a country saturated with high speed internet connection?

 

[mokwit]

Spend the whole day trying to hack into every PC in Asia. Virtually all hacking attempts in this ime zone originate in S. Korea

 

[ryan48sg]

The IB quote of 0.2% for Kospi options
is *very* expensive.

The two or three brokers I am aware of
charge between 0.04% and 0.07% for
kospi options.

 

[def]

Quote from ryan48sg:

The IB quote of 0.2% for Kospi options
is *very* expensive.

The two or three brokers I am aware of
charge between 0.04% and 0.07% for
kospi options.

for retail or a professional trading 100K+ contracts per day? I'd be surprised if you could get such a rate. FWIW, most of the firms we surveyed were charging at least 30 bps for retail accounts.

 

[ryan48sg]

Hi def,

I am in a group of individual traders trading Kospi, and currently paying 0.04%. I guess we are professional but not doing anything like 100,000+ per day.

Other quotes we have been given to try to lure us
away have been in the .05-.07 range.

We believe that some of the heavy scalpers here (100,000+)
per day are getting even better than .04.

I would expect IB to be a little higher anyway, but 5 times
higher is pretty steep.

Regards

 

[def]

Quote from ryan48sg:

Hi def,

I am in a group of individual traders trading Kospi, and currently paying 0.04%. I guess we are professional but not doing anything like 100,000+ per day.

Other quotes we have been given to try to lure us
away have been in the .05-.07 range.

We believe that some of the heavy scalpers here (100,000+)
per day are getting even better than .04.

I would expect IB to be a little higher anyway, but 5 times
higher is pretty steep.

Regards

let's see how the business grows. as we get more volume, our prices will go down. However, but even for the active retail trader, our fees are very reasonable relative to what the major firms are charging. Also put the fee in perspective, a 10 lot of options with a premium of 75 cents = 1500 KRW in commission. That's less than $1.50 US or 150 KRW per contract. Each tick is 1000 KRW and thus is reasonable. Plus as a retail investor with IB you do not need your own investor ID and can do your own currency management.

 

[neilcharlton]

apart from IB , what other retail firms offer the kospi option ?

 

[ryan48sg]

Basically anyone who offers the GL platform should be able to because GL are wired into the exchange.

In Asia there are several - Refco (now Man Financial I think), Fimat, ABN Amro, Ong First plus the Korean houses themselves.

Re Del's earlier comment about the commission on an option priced at .75. Well, that seems ok if the price is .75, but some strategies make use of the very low priced options - .01 to .05 cents traded in high volumes - that is where the .2% gets expensive.