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Thailand Futures Exchange (TFEX) will launch Silver Online Futures, a cash settled futures contract that tracks global silver price, starting from November 9, 2020.
TFEX Managing Director Rinjai Chakornpipat said Silver Online Futures is a cash settled contract based on 99.9% purity silver bullion. Similar to TFEX Gold Online Futures, Silver Online Futures will be quoted in terms of US dollars per troy ounce but settled in the local currency with a multiplier of 3,000. The London Bullion Market Association or LBMA silver price will be used as a basis for the final settlement price. To align with TFEX precious metal contracts’ trading hours, Silver Online Futures will be available for trading until 3.00 a.m. (Bangkok time) of the following day. At client level, the margin for Silver Online Futures contract is expected to be around THB 10,675 per contract or approximately 15% of the notional value of the contract.
“Silver price is quite volatile and it has rallied strongly this year, rising from March low to a seven year high in August due to the growth in both investment and industrial demand. TFEX introduces Silver Online Futures to capture the increasing popularity of silver trading and hedging. Silver Online Futures also resembles the key features of TFEX Gold Online Futures, where there will be no exchange rate risk and will be settled in Thai baht,” added Rinjai
For more information, please visit www.TFEX.co.th
