TFEX Port Management Helper, a fact investors don't know yet.

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If it comes to TFEX or the futures market, many people might think of a picture of a market that looks so complex, elusive and risky that it can be exhausting in the blink of an eye.

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These remembrances have stuck tight for the 20 years since the market was founded, but the fact TFEX may have another angle that many have yet to see.

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Over the past two decades, TFEX has continued to grow in tandem with the Thai stock market and has become an important risk management engine.

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To date, TFEX is not a small market, as anyone understands, they have a very high daily contract trading volume. 🇹🇭

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🟢 ranked 32nd in the world.

🟢 Asia's 18th.

🟢 2nd place in ASEAN.

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These numbers reflect that the Thai derivatives market is rising to play a full role in the regional investment arena.

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Mr. Trivit Wang Wuashan, Managing Director, Futures Market Company (Thailand), pointed out that

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There are many parts of the TFEX market that people overlook: hedging.

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Imagine...... 🤔

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You accumulated a portfolio worth millions of baht, but the market started to send a downward signal. What would you do?

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Sell out, waste the opportunity. Hold it, risk the value. 💔

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The solution that many people do not know is to use the futures market to open up in the opposite direction. When the market goes down, the derivative profit will make up for the lost port value.

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The result is that the damage is absorbed. Your port remains stable despite how turbulent the market is.

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The charm of Leverage. 💡

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One of the hallmarks that makes TFEX attractive is the Leverage system, or the use of little money to control large-value contracts.

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Give an example to visualize....

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One SET50 Index Futures contract is worth about 192,000 baht (based on the SET50 index of 960 points), but investors only spend 13,125 baht on the actual margin.

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It sounds attractive, but this is a point to understand, because despite the low amount of money, every baht of profit and loss is calculated from the contract value of 192,000 baht, not from the money placed.

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That means Leverage is a double-edged sword.

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The first sharp is the exponentially high profit opportunity.

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The second sharp is the risk that comes together in the same proportion.

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Knowing the real risk, you can run it.

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TFEX is adapting for retail investors

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Mr. Trivit pointed out that TFEX knew that expanding its investor base had to start with making the market more accessible, and that it was studying improvements in important matters, especially smaller contract scaling.

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Currently, TFEX's contract size is still too big for most individual investors, so TFEX studied downsizing both SET50 Index Futures, Stock Futures and other types of contracts to make hedging a real thing for everyone, not just the big players.

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🥇 first step in adjusting the contract is to issue Mini Gold Online Futures.

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This change is to prepare for the launch of Mini Gold Online Futures on May 25, shortening the size of the gold contract to only one-tenth of the normal contract, making it significantly easier for retail investors to access their gold investments through TFEX.

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After all, in TFEX's view, Mr. Trivit pointed out that we wanted to see us as a risk management tool, which we wanted to turn from a "scary and hard-to-reach" market into a financial tool that everyone could actually use.

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As a speculative tool for those who want opportunity, and as a port shield for those who want stability, the most necessary thing is not courage, but understanding, because once you know what you are investing in, risk is no longer a terrible thing.

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