Author Topic: SIFC -- Stock Index Futures Contract  (Read 4191 times)

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Offline Farzooq

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SIFC -- Stock Index Futures Contract
« Reply #-1 on: December 29, 2012, 01:07:41 PM »

AKD Trade has been always on the forefront, whenever it’s a matter of facilitating the stocks investors as it was formed with a mission to provide retail investors maximum access to Pakistan's capital markets.

We feel delighted to inform you that we have now decided to provide you with the access to trade in the Stock Index Futures Contract (SIFC) from Monday, December 31, 2012. The SIFC trading will be carried out for the KSE-30 Index in a minimum lot size of five contracts. Some Key Specifications for the Stock Index Futures Contract (SIFC) are given below:

Underlying Index KSE-30 Index
Contract Multiplier Rs. 5.00 per index point or any other amount as may be determined by the Exchange from time to time with the prior approval of the Commission.
Minimum Fluctuation (Tick Size) One Index Point
Period of Contract 30 days, 60 days and 90 days
Opening of Contract First Trading day of the next week following the close of the contract.
Expiration Date/ Last Trading day Last Friday of the calendar month in which the contract is to expire.

SIFC will provide investors with an opportunity to mimic returns on the KSE-30 index, providing a hedge for individual investors and institutions to take counter balancing positions. Furthermore, SIFC offers cost effective basket exposure to index stocks.
Please note that Rs 20 per contract will be charged as commission on buying and selling of the SIFC contracts. However, there will be NO Roll Over charged on SIFC open positions for the first three months. Similarly, Capital Value Tax (CVT) is also exempted on SIFC Trading.

The Terms & Conditions as well as Policy & Procedures for Futures Trading Facility in DFC & SIFC with some amendments (w.r.t. SIFC) have been reproduced in the hyperlinks below:
A)     Additional Terms & Conditions for availing Futures Trading Facility (DFC/SIFC) with AKD Securities Limited

B)      Policy & Procedures – DFC - AKD Trade

C)      Policy & Procedures – SIFC - AKD Trade

All those clients who have already submitted the required document and availing the Future’s Trading Facility at AKD Trade, will be only be required to request activation of SIFC Trading facility in their accounts either via return email or by calling us at our Call Centre UAN: 021-111-253-253.

However, if you haven’t opted for the Futures Trading facility as yet, and you want to trade in the Deliverable Future’s Contracts (DFC) or the Stock Index Futures Contract (SIFC) then you will be required to print the Document A: Additional Terms & Conditions on Rs 50/- Stamp Paper and submit the duly filled and signed document to any of our offices.

Once SIFC Trading will activated in your AKD Trade account, you will be assigned with a specific SIFC Trade Limit equals to five times of your equity (Equity X 5) for trading in Stock Index Futures Contract (SIFC) for Buying as well as Blank (Short) Selling.

If you are willing to avail this facility, have any queries or need further explanation then please contact us at our Call Centre UAN: 021-111-253-253 or email us at info@akdtrade.com

Looking forward to provide you with the best of what online trading has to offer.

Best Regards,

Customer Support Services
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SIFC -- Stock Index Futures Contract
« Reply #-1 on: December 29, 2012, 01:07:41 PM »

Offline Hamid Dharki

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Re: SIFC -- Stock Index Futures Contract
« on: December 29, 2012, 10:35:22 PM »
Good Idea. I can use it to hedge when needed

Offline Valueestimator

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Re: SIFC -- Stock Index Futures Contract
« Reply #1 on: December 30, 2012, 08:15:00 PM »
what is its symbol.

AGIC UNIC KML SSOM POML KHTC FZCM   FASM BTL JDMT DGKC

Offline msypk

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Re: SIFC -- Stock Index Futures Contract
« Reply #2 on: December 30, 2012, 08:26:40 PM »
@ Farzooq bahi

in yr post it was mentioned that 1 lot = 5 contracts and contract multiplier is 5 so if index gains 1 point will we gain 25 rs on 1 lot ?
regards.

Offline sufi

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Re: SIFC -- Stock Index Futures Contract
« Reply #3 on: December 30, 2012, 08:28:11 PM »
what is its symbol.

KSE30-JAN and in the markets select SIF

Offline Farzooq

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Re: SIFC -- Stock Index Futures Contract
« Reply #4 on: December 30, 2012, 09:33:26 PM »
@ Farzooq bahi

in yr post it was mentioned that 1 lot = 5 contracts and contract multiplier is 5 so if index gains 1 point will we gain 25 rs on 1 lot ?
regards.

yes
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Offline Hamid Dharki

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Re: SIFC -- Stock Index Futures Contract
« Reply #5 on: December 30, 2012, 10:32:45 PM »
I am glad that I can now short KSE Index by using futures to lower my Beta exposure

Offline Tezihunt

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Re: SIFC -- Stock Index Futures Contract
« Reply #6 on: December 30, 2012, 10:55:29 PM »
I am not sure but as I understand is like so:
Suppose you think the KSE 30 market will go up. You make the assessment that it’s a good time to enter into a long position with KSE-30 Index Futures Contracts. Each Contract may be regarded as covering an equity exposure equal to the value of the Contract times the Contract multiplier of RS. 5/-
Value of the Contract: Last closing on friday was at 13795.56 each Contract reflects an equity position worth 13795.56 X 5 = Rs. 68970.80.
A trader can long or short minimum 5 contracts. It means one position requires
68970.80 X 5 = Rs. 344889
Taking a long position will generate profit (or lose) as the futures price goes up or down. A 50 point change in index means 50 x5= Rs.250 per contract
TTL gain or loss on 5 contract 250*5= Rs. 1250/-

Anyone please confirm me or correct me if I am having wrong idea.
« Last Edit: December 30, 2012, 11:00:42 PM by Tezihunt »
Markets exist because of differences of opinion among investors.

Offline sufi

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Re: SIFC -- Stock Index Futures Contract
« Reply #7 on: December 30, 2012, 11:11:26 PM »
I am not sure but as I understand is like so:
Suppose you think the KSE 30 market will go up. You make the assessment that it’s a good time to enter into a long position with KSE-30 Index Futures Contracts. Each Contract may be regarded as covering an equity exposure equal to the value of the Contract times the Contract multiplier of RS. 5/-
Value of the Contract: Last closing on friday was at 13795.56 each Contract reflects an equity position worth 13795.56 X 5 = Rs. 68970.80.
A trader can long or short minimum 5 contracts. It means one position requires
68970.80 X 5 = Rs. 344889
Taking a long position will generate profit (or lose) as the futures price goes up or down. A 50 point change in index means 50 x5= Rs.250 per contract
TTL gain or loss on 5 contract 250*5= Rs. 1250/-

Anyone please confirm me or correct me if I am having wrong idea.

Yes you are right.

You don't need to have  Rs. 344889 to trade SIFC. AKD offering a leverage of 5 times against your equity/cash.

e.g If you have 70,000 you can trade SIFC. My advise would be let it trade for few days and see how much volumes and spread in SIFC. But for sure, a good hedge to reduce risk

Offline Tezihunt

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Re: SIFC -- Stock Index Futures Contract
« Reply #8 on: December 30, 2012, 11:24:01 PM »
How is it a good hedge? suppose you buy 1000 PPL and PPL goes down Rs.5 per share you are at loss of 5000/-. and if you hedged it by shorting 5 SIFC contracts then your profit suppose is Rs. 1250 as assumed in my earlier post then loss is still much greater than profit.
What is right method to hedge the trade properly through SIFC? :skeptic:
Markets exist because of differences of opinion among investors.

Offline sufi

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Re: SIFC -- Stock Index Futures Contract
« Reply #9 on: December 30, 2012, 11:36:40 PM »
How is it a good hedge? suppose you buy 1000 PPL and PPL goes down Rs.5 per share you are at loss of 5000/-. and if you hedged it by shorting 5 SIFC contracts then your profit suppose is Rs. 1250 as assumed in my earlier post then loss is still much greater than profit.
What is right method to hedge the trade properly through SIFC? :skeptic:

For single stock hedge option trading is good but unfortunately it is not available in kse yet.

here is a link to understand option trading http://www.investopedia.com/university/options/option.asp#axzz2GYrYq6Ef

Offline umar

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Re: SIFC -- Stock Index Futures Contract
« Reply #10 on: December 31, 2012, 12:28:51 AM »
deleted
« Last Edit: December 31, 2012, 12:31:51 AM by umar »
On a long enough time line, the survival rate for everyone drops to zero

Offline SBM

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Re: SIFC -- Stock Index Futures Contract
« Reply #11 on: December 31, 2012, 12:33:40 AM »
i am confused. Is this for just akd customers or for anyone ?
I hate waking up.

Offline msypk

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Re: SIFC -- Stock Index Futures Contract
« Reply #12 on: January 07, 2013, 02:52:15 PM »
@farzooq bahi
is kse30-jan a 30 days , 60 days or 90 days contract ?
regards.

Offline Farzooq

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Re: SIFC -- Stock Index Futures Contract
« Reply #13 on: January 08, 2013, 01:34:22 PM »
@farzooq bahi
is kse30-jan a 30 days , 60 days or 90 days contract ?
regards.

30 days
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Offline msypk

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Re: SIFC -- Stock Index Futures Contract
« Reply #14 on: January 17, 2013, 10:33:09 PM »
@ Farzooq bahi

in yr post it was mentioned that 1 lot = 5 contracts and contract multiplier is 5 so if index gains 1 point will we gain 25 rs on 1 lot ?
regards.

yes



@farzooq bahi,
 
today i traded 1 lot (5 contracts) of SIF kse30-jan with AKD.i squared off my position with a gain of 33 points.(bought : 13380 , sold :13413).my account statement shows that i only made  Rs.165 where as
i think i should have made 33x5x5 = 825, according to the above post.the commisiion deducted was 20x5=100 mis taxes 16 and 49 were credited.please explain how this thing works.
regards.
 

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