Derivatives Trading Steps

       1. Open derivatives account with SCBS Online

       2. Transfer cash collateral (initial margin) to derivative portfolio with the broker.

       3. Send orders via the broker’s internet trading website or call a marketing officer to place orders.

       4. Monitor a marked-to-market portfolio based on a daily settlement price, and maintain collateral status to be above call margin and force close level. If margin's level is reduced to the maintenance margin level, investors will be required (Call Margin) to add margin money until it reaches the level of initial margin

       5. Revise the open position and adjust to the appropriate strategy.

       6. Close the open positions to realize investment gain or loss. Many investors close the position before the expiration date therefore their profit/loss is based on the close-position price. However, some investors wait until the contracts expire to realize gain or loss based on the final settlement price.

       7. Cash Balance Withdrawal has equal of Excess Equity at the end of the day. Customer has to request cash balance withdrawal in advance 1 day and then you will receive fund in the afternoon on the next business day.

       Note: Any cash withdrawal transactions on day (T) will be processed to your saving bank account in the afternoon on the next business working days (T+1).

             Techniques:

       1. Market liquidity: Futures and options with different contract month will have different liquidity. The nearby contract will have the most liquid; the longer contract will have less liquid, respectively. Liquidity may affect the price and the difficulty to close futures contract.

       2. Size of Investment: Size of investment may directly affect customer’s profit/loss in future. Customers should maintain collateral status to be above call margin and force close level and should set the limit loss point.