Last Updated on 21 September, 2020 by Samuelsson

The KOSPI 200 Index futures track the KOSPI 200 Index market and were introduced in 1996.

 

Futures Contract (KOSPI) Specifications

Symbol:  KOSPI

Point Size: KRW 250,000

Minimum Price Fluctuation: KRW 12,500

Trading Hours:

Single Price Auction: 08:00 ~ 09:00 and 15:35 ~ 15:45
09:00 ~15:45 (Mon-Fri)
09:00 ~15:20 (Last trading day)

Expiration Months: March, June, September, and December

The last trading day is the second thursday of the contract month

 

Advantages of KOSPI200 Futures

Kospi 200 futures have the same benefits as other futures contracts. They are good

As with most types of futures, the Kospi 200 Futures contract useful for traders who want to hedge against market movements. Futures are also good for those who wish to adjust their portfolio allocation through leverage. Here are two more advantages of the Kospi 200 futures Market:

Low Costs – KOSPI200 Futures offer very low costs relative to the exposure in relation to their market exposure

Leverage – 

 

Kospi 200

Kospi 200

The Kospi 200 Index Market

Kospi 200 is a market index that consists of the 200 largest companies of the KOSPI index, which was in introduced in 1983 with a starting value of 100, counting from 1980. The KOSPI200 index makes up over 90% of the KOSPI index, which makes the two indexes very alike.

KRX 100 Market Index

The KRX 100 index was introduced in an attempt to replace the KOSPI 200 for futures contracts. However, the attempt has not proven successful so far, and KOSPI 200 remains the most widespread index of the two.

KRX 100 is made up of the 100 largest stocks listed on the Korea Exchange.

 

Reasons to Trade Korean Kospi 200 Futures

 

 Leverage

Futures give traders the option to profit even from small movements, through leverage.

Low Costs

With futures, you pay very little in relation to the market exposure you get through leverage.

You May Go Short

With futures contracts, you can sell short and profit from downward movements in the market.

You can read more about the benefits of trading futures in our post on the topic.

Trading Strategies

Every market has its own special characteristics, but there are some traits that can be observed in many markets. One such logic that is prevalent among market indexes, is mean reversion.

Mean reversion is the tendency of a market to revert to its mean, once it has made exaggerated moves in one direction. So, of the market has moved excessively to the downside, we may soon expect it to turn around. The mean reverting tendency of index markets is best used to go long by catching a falling market, due to the long term rising trend of the equity markets.

In our collection of edges and strategies, we have gathered edges for a wide range of markets! Have a look!

Where to Find Price Data

The price graph of the Kospi 200 futures market can be viewed here.

If you want to get data into your trading platform you will have to sign up for an external data feed. E-signal offers data for the Kospi 200 futures market

Where To Trade Kospi 200 Futures

Not all American brokers offer Asian or even European markets.

However, Interactive Brokers (IB) does, and Hang Seng futures can be traded through them. IB is known for its low commissions and is a reliable broker in the trading industry.

 

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