Futures on WSE
Subjects:
Futures
The WSE derivatives market was launched on January 16, 1998, when WIG20 index futures were introduced to trading.
In subsequent years, futures on currencies' exchange rates, individual stocks, and other indices followed.
In May 2002 WIG20, TechWIG, Midwig index futures, as well as USD and Euro futures and single stock futures were traded on the Exchange.
The Exchange, as the organiser of trading on the futures market, develops contract specifications, which define, among other things, the manner of contract value calculation, the quotation unit and tick - the minimum price change, the first and last day of trading, the manner of daily and final settlement price determination and the expiry date. In its role as a clearing house the www.kdpw.com.pl (National Depository) determines procedures for clearing, settlement and record keeping, as well as the required margin for securities.
Futures contracts are traded in the continuous trading system from 9.00 a.m. to 4.10 p.m. At the opening and closing of trading, an auction is held just as in the case of other securities quoted in the continuous system.
Price variation limits are imposed on futures contracts trading. The maximum allowable variation from the previous settlement price is 10% for index and stock futures, and 5% for currency futures.
Also known as animators, some Exchange members act as market-makers to ensure liquidity on the derivatives market. This means that, based on an agreement made with the Exchange, they are required to place their own buy and sell orders in the order book. In 2001 also DM BO¦ had started to perform a market-making function.
Futures WIG20 - specification
| Contract symbol | FW20kr, where:
k -delivery month code (H, M, U, Z) r -last digit of delivery year |
| Multiplier | 10 PLN (about 2,50 USD) |
| Contract value | Multiplier x contract price |
| Quotation unit | Index points |
| Tick size | One index point (10 PLN per contract) |
| Daily limit | 10% |
| Trading hours | 9:00 a.m. - 4:10 p.m. |
| Contract expiry months | Three nearest months of the following cycle: March, June, September, December (H, M, U, Z) |
| First trading day | The first trading day following expiry of the previous contract |
| Last trading day | The third Friday of the delivery month
If there is no trading session on that date, it is the last trading session day preceding the third Friday of the delivery month |
| Final settlement price | The final settlement price is determined on the contract expiry date as the arithmetic mean of all WIG20 values from the last hour of continuous trading and closing WIG20 index value |
| Settlement date | The first business day following the contract expiry date (day after the last trading day) |
| Settlement | Cash in zloty (PLN) |
The margin is designed to provide security in respect of open positions held on trading accounts.
An initial margin is paid by clients to hedge the risk of holding open derivatives positions.
The initial and maintance margin is disclosed by the NDS in a communiqué.
In Warsaw Stock Exchange all margins are calculated as a percantage of the futures value.
Example
Last settlement price=1500
Investor position=2xFW20
Initial deposit=last settlement price x multiplier x number of open positions x initial deposit ratio
Initial deposit= 1500 x 10 PLN x 2 x 8,1% = 2430 PLN.
Quotes and Charts
We offer e.g.:
We invite to use demo version of the html-page quotes and analyze strong trends on FW20 futures.
THE RISK OF LOSS IN FUTURES AND OPTIONS TRADING CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN FUTURES TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS.
