Silver is unique amongst metals due to the fact that it can be classified as both a precious metal and an industrial metal. Today, silver is sought as a valuable and practical industrial commodity and as an investment. Silver Futures is a futures contract with Silver Bullion (0.999 purity) as an underlying asset. Silver is an effective portfolio diversifier. Silver was launched on June 20th, 2011.
TFEX has defined the characteristics and specifications for Silver Futures, as follow:
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Heading |
Contract specification |
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Underlying Asset |
Silver Bullion with a purity of .999 |
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Ticker Symbol |
SV |
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Contract Size |
100 troy ounces |
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Contract Months |
3 nearest even months : February, April, June, August, October and December |
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Price Quotation |
Baht per 1 troy ounce of silver |
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Minimum Price Fluctuations |
THB1 (THB100 per contract ) |
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Price Limit |
Initial price limit is ±10% from the latest settlement price. Should traded price reach the limit, trading will be halted for a certain period announced by TFEX. After trading resumes, the price limit will be expanded to +20% of the latest settlement price. |
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Trading Hours |
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Speculative Position Limit |
Exchange may announce the position limit as it deems appropriate. |
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Last Trading Day |
The business day immediately preceding the last business day of the contract month. The trading of expiring contract will be ceased at 16:55 hrs. on Last Trading Day. |
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Final Settlement Price |
The Final Settlement Price shall be calculated on the basis of the London Silver Fixing price announced by London Silver Market Fixing Limited and the foreign exchange rate for Baht to US dollar announced by TFEX. The formula for its calculation is: |
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Settlement Method |
Cash Settlement |
Investors are require to deposit Initial Margin with their respective broker before trading futures contract. Brokers will then calculate the profit and loss and add or subtract funds at the end of day via a processed call Mark-to-Market.
- If losses occur and causes the margin account to drop below the maintenance Margin level,
- Investors are require to deposit additional funds to meet the Initial Margin requirement.
- If there are profits above the Initial Margin, Investors can withdraw their funds from their account.
According to the rules and regulations, the initial margin for local investors should be at least 1.35 times the maintenance margin set by Thailand Clearing House Co., Ltd. (TCH). However, as a mutual agreement between brokers and the Futures Industry Club (FI Club), the initial margin is set at 1.9 times the maintenance margin and 1.35 times the maintenance margin for local investor and institutional investor, respectively.
The commission is a sliding scale first contract based on the number of contracts traded per day, VAT exclusive, for Offline and Internet trading as follows:
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No. of Contract |
Commission Fee |
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Offline |
Internet trading |
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1 - 25 |
95 |
86 |
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26 - 100 |
75 |
68 |
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101 - 250 |
55 |
50 |
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More than 250 |
45 |
41 |
