Futures contracts on VN30 index

A futures contract is an agreement between the buyer and the seller about a transaction taking place in the future at a predetermined price.

Futures contract on the VN30 index is a type of futures contract with the underlying asset being the VN30 index, simulating the price expectation of the VN30 index at the time of maturity; is a standardized product traded on the Exchange.

VN30 index futures contracts trade with 4 codes corresponding to 4 expiration months: Current month, next month, last 2 months of the 2 most recent quarters. Futures contract maturity date is the 3rd Thursday of the maturity month.

The VN30 Index is calculated based on a basket of 30 stocks with the highest market capitalization and liquidity on the HOSE exchange.

1. How to read Futures Contract code:

Each VN30 index futures contract code will have 9 characters, of which:

• First 4 characters: Type of underlying asset
• Character number 5: Contract type
• Character numbers 6-7: Future contract maturity year
• Character numbers 8-9: Future contract maturity month

At any one time, there are always 4 VN30 index futures contracts traded on the floor with the following common names:

• VN30F1M: VN30 index futures contract expires in the latest month
• VN30F2M: VN30 index futures contract expires next month
• VN30F1Q: VN30 index futures contract expires in the latest quarter
• VN30F2Q: VN30 index futures contract expires next quarter

2. Advantages of VN30 index futures

• Allow T0 transactions: Allow investors to buy & sell during the day, recording profits immediately; Contracts can be traded multiple times a day.
• Profit opportunity when the market declines: Allows investors to short sell the VN30 index by opening a sell position when investors expect the general market and the VN30 index to be in a downward trend. Investors earn profits when the VN30 index drops lower than the price when NDTD opens a sell position.
• High leverage without Margin fee: Underlying securities have a minimum margin ratio of 50%, equivalent to the securities company lending investors up to 50% of the money to buy securities (maximum leverage ratio 1-1 ). While the VN30 index futures contract only has a margin rate of only about 20% for trading, equivalent to a leverage ratio of 1-4 allowing investors to utilize capital 4 times higher than the underlying stock..
• Open and transparent when based on the VN30 index: The VN30 index includes 30 stocks, each stock does not account for more than 10% and the list of 30 stocks is restructured periodically every 6 months.

3. Futures contract information of VN30 index

Contract name	VN30 index futures contract
Contract code	VN30FYYMM
Underlying asset	VN30 index
Contract multiplier	100,000 VND
Maturity month	Latest month, next month, last month of latest quarter, last month of next quarter
Price step	0.1 index point (equivalent to 10,000 VND)
Last trading day	The third fifth day of the maturity month
Daily settlement time	According to VSD regulations
Final settlement price	Is the average price of the VN30 index in the last 30 minutes on the last trading day of the futures contract
Final payment date	The working day immediately following the last transaction date
Payment method	Payment in cash Payment of position profits and losses: On the next working day, record an increase/decrease in money on the customer account corresponding to the position profits/losses. Payment at maturity: The working day immediately after the last transaction day, record an increase/decrease in money on the customer account corresponding to the profit/loss value when finalizing the contract.