Trading KOSPI option contract just like a futures contract

Def,

I have heard the CFTC is going to approve Kospi trading real soon for the states. I have heard this many times. But there has been so much bitching about the CFTC that they have restructured some things. And they are supposed to have things more streamlined. Let me know if you hear anything or when this happens.
 
Quote from TGM:

Def,

I have heard the CFTC is going to approve Kospi trading real soon for the states. I have heard this many times. But there has been so much bitching about the CFTC that they have restructured some things. And they are supposed to have things more streamlined. Let me know if you hear anything or when this happens.
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I certainly will and I'm quite optimistic that it will come very soon but I'm not holding my breath. I've heard approval was imminent a number of times.
 
Quote from def:

I certainly will and I'm quite optimistic that it will come very soon but I'm not holding my breath. I've heard approval was imminent a number of times.
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Damn that was fast! Didn't realise you were online!!!!

good deal!
 
Def. Could you please tell us the multiplier value for the Kospi futures. The IB website states the multiplier as 500000 won which is 500 dollars. Is this correct?It sounds very high. Thanks...
 
Quote from Big Game Hunter:

Def. Could you please tell us the multiplier value for the Kospi futures. The IB website states the multiplier as 500000 won which is 500 dollars. Is this correct?It sounds very high. Thanks...
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That is correct, it is a big contract. The options are 100K KRW. Given the 1 tick increments and deep liquidity in the ATM and OTM markets, I'd suggest looking at the options over futures.
 
Im actually really quite interested in trading these things. The moves seem good in contrast to the US markets. Is the option spread between the bid and ask one tick? What is the value of one tick in USD. Are the futures spreads 1 tick also? Thanks.
 
Quote from Big Game Hunter:

Im actually really quite interested in trading these things. The moves seem good in contrast to the US markets. Is the option spread between the bid and ask one tick? What is the value of one tick in USD. Are the futures spreads 1 tick also? Thanks.
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< 3 tick .01
> 3 tick .05

For options < 3 the spread is usually .01

each tick (.01) is roughly $1

The futures minimum tick is .05 and are 5x as large. (500K multiplier)
 
So then is the future value one tenth of the index value like with the spiders because if it wasnt it would be a 600k contract which its obvioulsly not. ie is it 133.3 when the index is 1333 with each future point worth 500. Right?
 
Quote from Big Game Hunter:

So then is the future value one tenth of the index value like with the spiders because if it wasnt it would be a 600k contract which its obvioulsly not. ie is it 133.3 when the index is 1333 with each future point worth 500. Right?
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The future is 1/5 the value of an option and is the same value of the indes. The full value is roughly 90K. Each future tick is .05 or roughly $25 per tick or $500 per point.
 
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