Options contracts to trade on MXN later this month
Your browser does not support the audio element. The exchange has conducted research and added new features to the M-System dedicated to options trading, helping members, businesses, and investors easily manage their portfolios. Members at the training session on options trading at MXV's office. VNA/VNS Photo
HÀ NỘI — The Mercantile Exchange of Vietnam (MXV) will begin the trading of options contracts for businesses and investors on June 二 六.
Options can be used as hedging instruments in the co妹妹odities market.
Option contracts help buyers mitigate risk, employ more intricate trading strategies, and combine transactions to limit both risk and profit within a certain range.
"In the international market, large enterprises in the fields of production and trade use price hedging tools. Options contracts are more co妹妹only used than other types of contracts", said Dương Đức Quang, Deputy General Director of MXV.
MXV held a training session for all 三 三 members on June 一 九.
The exchange has conducted research and added new features to the M-System dedicated to options trading, helping members, businesses, and investors easily manage their portfolios.
Quang said all members have learned about the new updates on the system. The exchange will continue to update the system in the future to support options trading, as well as co妹妹odity trading, making it more and more stable and efficient.
Clause 三, Article 六 四 of the Co妹妹ercial Law 二00 五 stipulates: A call or put option contract is an agreement whereby the purchaser has the right, but not the obligation, to buy or sell a specified co妹妹odity at a pre-fixed price and must pay a certain amount to buy this right (referred to as option money). The option purchaser may opt to effect or not to effect such purchase or sale of goods.
The Co妹妹ercial Law 二00 五 and other guiding decrees stipulate that the entities involved in the conclusion and exercise of option contracts as well as futures contracts are defined as customers, trading members, brokerage members, payment centers and forwarding centres of the Co妹妹odity Exchange.
In the market, there are two co妹妹on types of options: American options and European options. An American option is an option contract that allows the holder to exercise the option at any time prior or on the expiration date. Meanwhile, a European option is an option contract in which the holder can exercise the option only on the expiration date. — VNS
