Products

Rubber Futures

RSS3 Futures

RSS3 Futures

RSS3 Futures is a futures contract on underlying Natural Rubber Ribbed Smoked Sheet No. 3 (RSS No.3)
as per "The Green Book" and one contract underlying on 5,000 tonnes. RSS3 Futures has trading hours between 9.15 to 16.55 without break for more coverage international market’s trading hours.

RSS3 Futures has 2 settlement methods, Cash Settlement and Delivery Settlement method. Settlement method depends on investors’ or rubber-involved entrepreneurs’ preference, so entrepreneurs can use RSS3 Futures as risk management tool.

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Summary of RSS3 Futures Contract Specification

Heading
Contract Specification
Underlying Asset Natural Rubber Ribbed Smoked Sheet No. 3 (RSS No.3) as per "The Green Book"
Deliverable Grade RSS No. 3 with specific qualities (House Term) accepted by Major International Tyre Manufacturers such as Bridgestone and Michelin.
Contract Size 5,000 Kg (5 metric tonnes)
Delivery Unit 20,000 Kg (20 metric tonnes) or multiple thereof
Contact Months 7 consecutive months
Price Quotation THB per kg
Minimum Price Fluctuation 0.05 Baht/kg (or THB 250 per contract)
Trading Hours
Pre-open :
Open session :
09:15 - 09:45
09:45 - 16:55
Price Limit Initial limit is ± 5% from the latest settlement price. Should traded price reach the limit, trading will be halted for a certain period.

After trading resume, limit will be expanded to ± 10% of the latest settlement price
Position Limit
  • Own or control < 10,000 contracts net long or net short in respect of any contract month (except the 1st contract month)or in respect of any or all contract months combined. and
  • Own or control < 1,000 contracts net long or net short on the 1st contract month.
Last Trading Day The business day immediately preceding the last business day of the contract month. The trading of expiring contract will be ceased at 16:55 hrs on Last Trading Day.
Settlement Method
  • Investors must submit acceptance/ delivery notices on last trading day for physical delivery. Only investors with capacity to take/deliver physical could submit the notices.
  • In case that delivery notices could not be matched with acceptance notices or investors do not submit notices, the positions will be cash settled with the Final Settlement Price.
  • The Final Settlement Price will be calculated from the Volume weight average price (VWAP) on the last trading day, providing that trading volume of expiring contract exceeds the level specified by exchange. If the trading volume does not meet the criteria, then use the last 3-Day average of Daily Settlement Price (including last trading day).
Delivery Method Delivery must be made within the last trading day of the delivery month at buyer options between:

  1. Free on Board (F.O.B) term at either Bangkok port, Lam Chabang port or other port as specified by the Exchange.
  2. Delivery within local warehouse area (Bangkok, Nakornpathom, Pathumthani, Samutprakarn, Samutsakorn, Saraburi, Cholburi, Rayong or other warehouse as specified by TCH)
Exchange Fee Less than or equal to 40 Baht per contract per side


Commission Rates for RSS3 Futures

Valid from now on until 30 December 2016

Individual Client

No. of contract
(per day per account)

Commission rate (Baht/Contract)
Via Markething Officer
Via Internet
From 1st- 25th contract 270 245
From 26th - 100th contract 245 222.5
From 101st - 250th contract 220 200
From 251st contract onward 195 177.5
** This price does not include 7% VAT.


Valid since 2017

Individual Client

No. of contract
(per day per account)

Commission rate (Baht/Contract)
Via Markething Officer
Via Internet
From 1st- 25th contract 290 265
From 26th - 100th contract 265 242.5
From 101st - 250th contract 240 220
From 251st contract onward 215 197.5
** This price does not include 7% VAT.


Pre-Trade Knowledge

Advantage of FUTURES Contract

  1. Buyers and Sellers have authority in setting price.
  2. No need of physical delivery but use cash settlement method instead.
  3. Use less investment money but make more profit.
  4. Able to make profit in both uptrend and downtrend.
  5. Able to trade by the investor self via internet trading.
  6. There will be Marketing Officers (Brokers) to help in providing information for investment and following the market situation for the investors.

Margin Deposit in Futures Contract

Investors are required to deposit Margin with their respective broker before trading futures contract and there are following 3 types of margin.


  • 1
    Initial Margin (IM)

    is the minimum equity required to initiate a futures position and equal to only 10% of underlying asset’s value.

  • 2
    Maintenance Margin (MM)

    is a set minimum margin per outstanding futures contract that a customer must maintain in their margin account and equal to 70% of contract value.

  • 3
    Force Close (FC)

    is the case when the margin level decrease to Force Close Margin Rate or 30% of contract value, the brokers have rights to close the account to cut loss instantly unless the investors can deposit additional funds to meet Initial Margin requirement within 1 hour.

Mark-to-Market

Date
Transaction
Closed Price
Profit/Loss
Transferred In/ Transferred Out
Margin Amount
03/02/2009 Buy Gold Futures at 15,000 baht       70,000 baht
  Profit/loss adjustment 15,080 baht 4,000 baht
(80 X 50) 		  74,000 baht
04/02/2009 Profit/loss adjustment 14,800 baht -14,000 baht
(280 X 50) 		  60,000 baht
05/02/2009 Profit/loss adjustment 14,500 baht -15,000 baht
(300 X 50)		   45,000 baht
06/02/2009 Deposit additional margin     25,000 baht 70,000 baht
  Sell Gold Futures at 15,050 baht   27,500 baht
(550 X 50)		   97,500 baht
3 Feb

Mr. A buys gold futures at 15,000 baht for 1 contract. After the price is at 15,080 baht, the market will Mark-to-Market to calculate profit/loss by comparing between closed price and buy price 15,080 -15,000 = profit 80 baht X 50 (1 gold futures contract is equal to 50 baht). Therefore, Mr. A will get profit 4,000 baht and whole margin amount is equal to 74,000 baht.

4 Feb

The price is lower to close at 14,800 baht. The calculated profit/loss is equal to 14,800 – 15,080 = (280*50) or loss 14,000 baht and the margin amount is equal to 60,000 baht.

5 Feb

The price is lower to close at 14,500 baht. The calculated profit/loss is equal to 14,500 – 14,800 = (300*50) or loss 15,000 baht and the margin amount is equal to 45,000 baht. Therefore, Mr. A is required to deposit additional margin 25,000 baht within the next day.

6 Feb

The price is lower to close at 14,500 baht. The calculated profit/loss is equal to 14,500 – 14,800 = (300*50) or loss 15,000 baht and the margin amount is equal to 45,000 baht. Therefore, Mr. A is required to deposit additional margin 25,000 baht within the next day.


Trading Steps


  • 1
    Register and open account with MTS Gold Futures with following required documents.

    • Copy of ID card
    • Copy of House Registration
    • Statement or Book Bank Transactions in last 3 months.
    • Copy of Book Bank (Only Kasikornthai Bank, Bangkok Bank, Krungthai Bank, and Siam Commercial Bank)

  • 2
    Statement or Book Bank Transactions in last 3 months.
  • 3
    Send trading order to broker via telephone or trading by the investor self via internet trading.
  • 4
    Mark-to-Market

    For your information regarding to profit or loss in your investment, TFEX will update your trade status in daily basis by adding fund to your margin account if you have profit on the contrary if you have loss, TFEX will deduct the amount of fund in your account.

  • 5
    Please be noted that you should recheck your account status to control risk and update your portfolio along with the market conditions.
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