Melting GOLDEN Taiwan Area Stock Index Futures

Author: Xu Shimin
Publisher:
Publish Date: 2002-10-01
Features: As is well known, derivative products, especially futures, have created an excellent hedging tool for the spot market due to their two major functions—value discovery and hedging. They also provide a solid foundation for stabilizing the spot market and reducing volatility. However, they inevitably introduce new operational risks. The Taiwan Futures Exchange has been operating for nearly four years since launching its first futures contract, the "Taiwan Stock Exchange Index Futures Contract," on July 21, 1998. Building on this foundation, the exchange introduced a new product, the "Taiwan Stock Exchange Index Options Contract," in March 2002. The market has gradually evolved from initial sporadic trading by retail investors aiming to "bet small to win big" to becoming dominated by institutional hedging and arbitrage transactions, truly realizing the functions of the futures market. This book covers topics such as the Taiwan futures market, futures index products, futures trading, and risk control.