Commodity derivatives – attractive investment channels in 2020


2020 – Investors struggle with the impact of macro policies

Currently, Vietnam is increasingly opening the door to international trade, leading to the need to build intermediary trading systems for import and export goods to the global market.

In the world in general, and in Southeast Asia in particular, import and export trading activities have long been traded on electronic systems, allowing participants to choose a variety of payment methods.

From 2018, the Vietnam Commodity Exchange (abbreviated as – MXV) operates under the provisions of Decree 51/2018 / ND-CP in addition to Decree 158/2006 / ND-CP. MXV is the pioneer organization of the centralized commodity market in Vietnam, officially operating the national commodity market from August 17, 2018.

Commodity derivatives - attractive investment channels in 2020 - Photo 1.

Operating model of MXV.

MXV identified derivative commodity investment channel Safe – Transparent – Effective

Legality: The Vietnam Commodity Exchange operates under the amended and supplemented license No. 486 / GP-BCT issued by the Ministry of Industry and Trade on June 8, 2018.

Transparency: Vietnam Commodity Exchange is connected with the Commodity Exchange in the world, so information about commodity prices is clearly transparent, updated and fluctuates quickly. MXV registers a list of Legal Entity Identifier (LEI) applied by The Financial Stability Board (FSB) to all financial transactions with partners in Europe.

Liquidity: With tens of millions of lots traded, millions of open positions in a month (31 million lots are traded and more than 7 million open positions in January 2020 – Data from Vietnam Commodity Exchange ). Direct transactions with international commodity exchanges such as (CME Group-US VND 1.5 million billion, ICE Futures Europe – VND 961 trillion, TOCOM Japan – VND 430 trillion – Year 2018) scale Global creation of high liquidity.

Bidirectional: Investors can continuously open and close positions (ie buy or sell) in the trading session to seek profit based on the up and down volatility of the market.

Good margin ratio: Compared to traditional investment channels permitted by Vietnamese law such as securities or real estate, derivative has a much higher margin ratio (up to 1:30, depending on according to some items). Therefore, investors do not need too much capital to trade.

Reduce transaction costs: When participating in securities investors will bear the minimum cost (0.4% of the contract value). Meanwhile, commodity derivative markets only pay (0.07% to 0.14% of the contract value). Also do not collect any other types of expenses (no overnight fees, no interest).

Business member licensed by Vietnam Commodity Exchange. Gia Cat Loi Commodity Trading Joint Stock Company

Website: https://giacatloi.vn/

Hotline: 0945435430

Sign up for advice here.

Address: 3rd Floor, Viet Long Building – 95 Nguyen Cong Tru, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City.

Sunshine

According to the Economic Life



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