Unlike trading in the underlying securities, where profits can only be made from the appreciation in stock prices, derivative securities trading allows investors to profit even when the market declines. When anticipating a market downturn, you can take short positions in derivative contracts. If the market moves in the predicted downward direction, you can lock in profits by closing the position at a price lower than the initial entry price.

When participating in derivative securities trading, you will pay the following costs:

• Transaction fees from the securities company are fees that you must pay to the securities company where they open an account and execute trades. The fees are applied to both buy and sell positions.
• Transaction fees from the stock exchanges are based on the tariff set by the Hanoi Stock Exchange (HNX).
• Position management fees (overnight) and margin asset management fees from Viet Nam Securities Depository and Clearing Corporation (VSDC): are based on the regulations of VSDC.
• Taxes are applied according to regulations of derivative services.
• Other service fees.

Please refer to detailed Tariff here.

Benefits:

• Flexible trading: You may open or close positions at any time and settle profits or losses within the same trading day.
• High leverage ratio: You only need to deposit a margin that represents a fraction of the total value of the futures contract you want to participate in.
• Risk hedging: You can mitigate risks associated with price fluctuations of the underlying asset by participating in futures contracts trading.
• Advantage in Downtrend: You who correctly predict the market's upward or downward trend and choose the appropriate position can profit even when the market is declining.
• Opportunities from price discrepancies: The price of a futures contract typically moves in line with the price of the underlying asset. However, in some cases, the two may diverge. You can take advantage of these price discrepancies to earn profits from the price difference without having to invest any additional capital.

Risks:

• When your margin value falls below the allowable level (Maintenance Margin Level), you must promptly add additional margin. If you do not add margin timely, you are being required to partially or fully close your existing positions to restore the account to a safe level.
• Due to high volatility and rapid price movements driven by leverage, when the price of a futures contract moves favorably, investors can realize significant profits on their initial margin. On the contrary, if the futures contract price moves unfavorably, investors may incur substantial losses on their margin within a very short period.

The calculation of the initial margin rate for the VN30 Index Futures Contracts is conducted by Viet Nam Securities Depository and Clearing Corporation (VSDC), based on estimates of the daily price fluctuations of the futures contract. Securities companies may set an initial margin rate that is equal to or higher than the rate prescribed by the VSDC. This rate can be adjusted either increased or decreased by the VSDC at any time, depending on market conditions and actual trading circumstances.

Unlike underlying securities, profits or losses from price differences in derivative trading are settled daily, rather than only upon selling the held shares. At the end of each trading day, all profits and losses from both open positions and those closed during the session are recorded and settled for customers.

Daily profit and loss settlement helps minimize the risk of unpaid obligations upon the expiration of derivative contracts.

Similar to the price of individual stocks, the size of each futures contract indicates the investment value an investor is engaging in. The size of a futures contract is calculated using the following formula:

Contract size = Price of the underlying asset * Multiplier

Example: If the VN30 Index is at 1,300 points and the multiplier set by the Stock Exchanges is VND100,000, the size of each VN30 futures contract will be VND130 million.

Unlike stocks, each index futures contract has a specific expiration date. On the expiration date, trading of the expiring contract ceases at the end of the day. All open positions in the expiring contract are considered closed by the end of the day and profits or losses are settled the following day. However, on the expiration date, the final settlement price calculated based on the price of the underlying asset on that day is used to determine profits or losses rather than the regular daily settlement price. This means that price movements in the underlying asset can directly influence the price fluctuations of the futures contract.

For the VN30 Index Futures Contracts, the expiration date is set for the third thursday of the contract’s expiration month. At any given time, there are four VN30 index futures contracts available for trading with expiration months being: the current month, the next month, the last month of the nearest quarter and the last month of the following quarter.

According to FPTS’s current regulations, the initial margin rate is 17.85% of the contract value. To maintain a safe account level of 80%, you need to deposit a total margin of 22.3125% of the contract value to participate in buying/selling.

Example: If you wish to buy/sell a futures contract on December 2024 (VN30F2412) with a current price of 1,293 points:

The required margin is: 1,293 * VND100,000 * 22.3125% = VND28,850,063 to buy/sell one contract.

However, to minimize the risk of automatic position closure, you should deposit more than the required margin.

To open a derivatives trading account, you must first have a standard securities trading account. There are two methods to register for derivatives trading at FPTS: Register in person at FPTS transaction offices or Register online and send your signed contract to FPTS. For detailed instructions on registering for derivatives trading, please refer here.

You can deposit/transfer money into your derivatives trading account at FPTS via one of the following methods here.

For detailed instructions to place, cancel or modify orders on EzFutures here.

• On EzFutures screen, select Account Management, then click Profit/Loss Report
• Choose the Contract code, select the time frame and click Update to view the information

The Vietnam Securities Depository and Clearing Corporation (VSDC) charges a margin asset management fee based on the end of the day balance. If the balance is zero at the end of the day, no fee will be charged.

Notes: You should withdraw money from your margin account before 15:55 on business days. If your money are not successfully withdrawn, the margin asset management fee will still be applied.

• Closing newly opened positions within the day:

Profit/Loss of the position = (Closing price - Opening price) * Multiplier * Number of contracts

• Closing existing positions within the session:

Profit/Loss of the position = (Closing price - Settlement price of the last trading day) * Multiplier * Number of contracts

• Holding existing positions until the end of the trading day (Not the last trading day):

Profit/Loss of the position = (Final settlement price – Settlement price of the last trading day) * Multiplier * Number of contracts

• Holding existing positions until the end of the trading day (The expiration date of contract)

Profit/Loss of the position = (Final settlement price – Settlement price of the last trading day) * Multiplier * Number of contracts

Total profit/loss from opening to closing position of a contract is the sum of the daily profit/loss for all the trading days the contract remains active.

The participation conditions are simple: you only need to have a securities account at FPTS and register for the EzSavings service via FPTS website or mobile application (you need to send your signed contract to FPTS for the service to be activated).

Conditional orders cannot cancel or modify.

The Up order is applied during an upward market trend.

Yes, to place both a take-profit and stop-loss order at the same time, you may select the OCO order.

You should select the Up-Buy order to cut losses.

The OCO order is applied when you hold a position. This order is used to secure profits at the target price and cut losses if the price moves unfavorably.

Currently, the order template feature is only applied to the VN30 index futures contracts.

No, paired orders cannot be placed using market orders (ATO, ATC, MTL, MOK, MAK).

Yes, after selecting the chart template saving mode, you can customize and save drawing tools, patterns and indicators they have used.

Yes, you can select international time zones for tracking. The time will adjust according to the chosen time zone.