Futures
Finance Instruments
Stock
Currency
Bond
Future
Option
Finance Instruments
Stock: Ownership
Currency: Unit, Value
Bond: Claims
Future: Claims
Option: Claims
Futures
From 17"th netherland
(The Dutch Golden Age)
Tulpenmaine
Ottoman Tuple
Colorful, Nobility
Slow Grow
Dutch has 💰
In Conclusion
Confidence is the key
In Conclusion
Confidence is the key
Faith
Morden
Chicago Board of Trade (CBOT)
Commodity: Corn, Soybean, Wheat, Rice...
Precious metal: Gold, Sliver, Platinum...
Energy: Brent Oil, Crude Oil, Gas...
Index: DJI, S&P, TWSE...
Stock: TSMC, AAPL, NVDA...
Underlying Assets
Time Value
Price Volatility Risk
(including exchange rates, risk-free rates)
Pros
Hedge
Price Discovery
Speculation
Arbitrage
Contract
Delivery
Underlying Assets
Size
Exercise Price
2020 WTI
WTI @ 2020 Apr.
Margin
Initial Margin
Maintenance Margin
TAIEX
Initial Margin: 148,000
Maintenance Margin: 113,000
NTD
One index point = 200
Margin Call
Deposit: 148,000, Buy 1 lot at 12,758
Initial Margin: 148,000
Maintenance Margin: 113,000
Index ↘️ 12,570
Now Value: 12,758 - 12570 = 188
188 x 200 = 37,600
148,000 - 37,600 = 110,400
110,400 < 113,000
Margin Call !!!
Should deposit more money to initial margin
Margin Call
When your margin loss below the maintenance margin, you should deposit more margin to initial margin at least.
Zero-sum Game
Future Fair Value
Next
Au revoir
Futures
By Chia Yu Pai
