TFEX launches its latest product-gold futures

This Monday, Thailand Futures Exchange PCL (TFEX) officially launched its latest product-gold futures. Each gold contract is for 50 baht-weight of gold, based on the typical 96.5% purity standard used in the local market.

“With today’s highly volatile global gold price, trading gold futures is highly appropriate, either to use as a risk management tool or to enjoy the potential profits from that volatility.Thus, gold futures received great interest from investors.

In this initial period, investors can trade gold futures through 36 TFEX members. However, next month, we expect that four members experienced in gold trading will provide trading services, while selling agents (gold shops) will work with TFEX brokers. This will give investors more trading channels that are easy to access. The cooperation of these entrepreneurs will help expand the investor base and support the growth of gold futures trading,” said Ms. Kesara.

As of February 2, 2009, TFEX’s trading volume totaled 8,164 contracts, comprised of SET50 Index Futures (7,825 contracts), SET50 Index Options (132 contracts), stock futures (133 contracts) and gold futures (74 contracts). Retail investors accounted for 58.31% of total trading volume, followed by institutions at 27.14% and foreign investors at 14.55%.commissions on gold futures will be on a sliding scale.

For one to five contracts per day, the commission will be THB500 per contract; for the sixth through twentieth contract, it will be THB400 per contract and for the twenty-first contract on up, the rate will be THB300 per contract.