Derivative securities are financial instruments in the form of contracts, which value depends on the value of the underlying asset (commodity, financial instrument). The transaction price will be determined at the present time, however the execution time will be at a specific date in the future. Includes 4 types:
– Options contract
– Futures contract
– Forward contract
– Swap contract
In the Vietnamese market, it is currently only allowed to trade futures contracts on stock indexes (Underlying asset is VN30 index) and government bonds (Underlying asset is Government bond with 5-year term/10-year term).
Compare underlying securities and derivative securities in the Vietnamese market:
Elements
Underlying stock
Derivative
Listed volume
There are limits, depending on the issuer
No limit
Amount of cash required to trade
Equal to the total value of the securities you want to trade
Deposit a portion of the transaction value
Required margin
Required for all transactions
Required for all transactions
Escrow costs
According to the margin lending interest rate of the Securities Company
