The company has been authorized by the SEC (Securities and Exchange Commission) to engage in the business of being a broker for futures trading on the Thailand Futures Exchange (TFEX). TFEX is the central market for trading derivatives that are referenced to underlying assets such as equity securities, debt securities, commodities, and other price or index-related instruments.
Derivatives or futures contracts are financial instruments created for buyers and sellers to agree on the purchase or sale of an underlying asset at a future date, with specified details such as the type of asset, details, price, quantity, settlement, and expiration date of the contract. In these transactions, the "buyer" is referred to as being "long", and the "seller" is referred to as being "short". Therefore, derivatives or futures contracts themselves have no intrinsic value but derive their value from the underlying asset they reference.
The company has been authorized by the SEC (Securities and Exchange Commission) to engage in the business of being a broker for futures trading on the Thailand Futures Exchange (TFEX). TFEX is the central market for trading derivatives that are referenced to underlying assets such as equity securities, debt securities, commodities, and other price or index-related instruments.
Derivatives or futures contracts are financial instruments created for buyers and sellers to agree on the purchase or sale of an underlying asset at a future date, with specified details such as the type of asset, details, price, quantity, settlement, and expiration date of the contract. In these transactions, the "buyer" is referred to as being "long", and the "seller" is referred to as being "short." Therefore, derivatives or futures contracts themselves have no intrinsic value but derive their value from the underlying asset they reference.
- Futures are contracts in which buyers and sellers agree to buy or sell the referenced asset on the contract's expiration date at a specified price and quantity. This makes futures a financial product that can generate profits in any market situation, as they are linked to underlying assets such as equity securities and commodity prices, like SET50 Index, stocks, crude oil, and exchange rates.
- Options are contracts that grant the buyer the right to buy or sell the underlying asset on the contract's expiration date at a predetermined price and quantity, as specified in the contract. When the expiration date arrives, the option buyer has the choice to exercise the right or not, while the option seller is obligated to fulfill the terms if the option buyer chooses to exercise it. Currently, the only underlying asset of options is SET50 Index.
The types of products that can be traded on the Thailand Futures Exchange include futures, options, and options on futures of various underlying assets, such as:
- Referenced to Equity Securities, such as index prices, individual stocks.
- Referenced to Debt Securities, such as government bonds, interest rates.
- Referenced to other prices or price indices, such as gold, crude oil, and exchange rates.