To make further efforts in the options and develop the market, on November 12 and 13, Dalian Commodity Exchange (DCE) invited the experts with rich experience of overseas options trading to organize a 2-day situation simulated trading training of options strategies for the member units with more than 110 trainees selected by over 40 member units participating in the workshop.
With a wide range of options trading strategies such as the strategies of profiting from market volatility and from time decay as well as various strategies of risk hedging, etc., how to use different options trading strategies depends on the understanding and judgment of the futures market and options market of the objects. At present, the trainings on options in the market are mostly in the form of the lectures delivered by invited lecturers, where the concepts related to trading strategies are presented without explaining how to apply appropriate strategies after rapidly identifying the market conditions and how to use strategies to deal with relevant positions when changes occur in the market. The imparting of the knowledge, experience and skills will achieve the best results through the interactive trading.
With a different form from previous training, the training had the following characteristics: First, the training focused on explaining and analyzing the principles of the option strategies so that the trainees of the member units can better grasp the ideas and methods of strategic analysis. Second, the training highlighted the situations for applying different strategies with the explanation of the strategies for different situations closer to the real trading. In addition, the training also featured the designing of various market situations and besides the presentation of the strategies application, the trainees may identify the situations simulated by the trading instruments developed by DCE and other institutions and conduct trading by using appropriate strategies.
The training was well received by the member units, who said that the form of the training combining the explanation of strategies and the simulation of situations was very creative and highly operable, hence the form and contents of training that the member units are in urgent need of currently. Therefore, a DCE official said that next DCE will launch the training on the strategies of market maker, options trading and other aspects in succession to meet the needs of the member units.
As early as May 2012, DCE initiated the internal simulated trading, which has been gradually expanded to involve some member units. To get the member units further prepared for the listing of the options, on the basis of the simulation trading conducted previously, DCE has launched the simulated options trading open to the entire market since October 14, encouraging the members to participate in the simulated trading through the primary seat system, the secondary seat system and the quotation system and testing the whole process of the option businesses in a bid to fully get ready for officially putting the options on line. DCE will support the member units meeting the requirements for the simulated trading in upgrading the option system by reducing the commission charge.
According to a DCE official, currently DCE has completed the initial preparations for the rules and systems of the option business, and the development of the systems of the futures company end and the system provider has begun. With the entire initial preparations put in place, the options trading will be launched timely in accordance with the arrangements of the China Securities Regulatory Commission (CSRC) in the next step.
Statistics show that currently more than 120 members of DCE have applied for the participation in the simulated trading of the soybean meal options with each member introducing at least 50 clients in the trading, the average daily orders of options reaching 150,000 contracts and an average daily volume of 80,000 contracts traded.
