DERIVATIVE TRADING AT FPTS

1. SIGN A DERIVATIVE TRADING CONTRACT WITH FPTS

- You bring your original identity card or citizenship card to FPTS offices to open an

underlying account (if you have not had it yet) and sign a derivative trading contract with

FPTS.

- Normally, the derivative trading account can start trading on the next working day to the

signing date of the derivative trading contract.

2. DEPOSIT MARGIN COLLATERAL AT FPTS

Method 1: Transfer money from the underlying account to the derivative account:

- Online method:

+ If you are in the EzFutures derivative trading vehicle (https://ezfutures.fpts.com.vn),

select Money Transaction/Transfer money into the derivative account (from the

underlying account), or

+ If you are in the EzTrade underlying trading vehicle (https://eztrade.fpts.com.vn),

select Money Transaction/Transfer money into the derivative trading deposits.

- Via telephone (only applied to customers using the Token Card - the user authentication

device): Place a phone call to FPTS to request money transfer to this effect and read

auto-generated Token Card passcode to the FPTS staff on the line. Available telephone

numbers are: 024.3773 7068 (in Hanoi City), 028.6255 5699 (in Ho Chi Minh City),

0236.3553 666 – ext. 678 (in Danang City).

- Over the counter: You must show your original identity card or citizenship card at FPTS

offices and sign under the Money Transfer Form.

Method 2: Transfer/deposit money via the master account of FPTS at banks:

- You deposit or transfer money to one of master accounts of FPTS at the following banks

with a fixed syntax: “Deposit money into [Account No. 058FxxxxxxF] of [accountholder’s

full name]

For example, Deposit money into [Account No. 058F123456F of Nguyen Van A

Sign derivative

trading contract

Deposit collateral at FPTS

Deposit collateral at VSD

Conduct derivative

trading

Settle payment for daily

profit/loss

Withdraw margin

collateral

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- List of banks at the service:

Name of

accountholder

Account

number At bank City

FPT Securities Joint

Stock Company 1221.0001.657.683 BIDV - Ha Thanh Branch Hanoi

FPT Securities Joint

Stock Company 6666.6666.387

Tien Phong Bank - Hanoi

Branch Hanoi

FPT Securities Joint

Stock Company - Da

Nang Branch

6666.7979.226 Tien Phong Bank - Danang

Branch Danang

FPT Securities Joint

Stock Company - Da

Nang Branch

5611.0001.117.054 BIDV - Danang Branch Danang

FPT Securities Joint

Stock Company - HCM

City Branch

3101.0002.232.862 BIDV - HCM City Branch HCM

City

FPT Securities Joint

Stock Company - HCM

City Branch

0000.6888.978 Tien Phong Bank - HCM City

Branch

HCM

City

3. DEPOSIT/WITHDRAW MONEY FROM THE MARGIN COLLATERAL ACCOUNT AT VSD

You can deposit/withdraw your money into the collateral account at VSD in one of the

following ways:

- Method 1: Deposit/withdraw money online via https://ezfutures.fpts.com.vn

- Method 2: Via telephone (only applied to customers using the Token Card - the user

authentication device): Make a phone call to FPTS to request money transfer from FPTS

to VSD and read auto-generated Token Card passcode to the FPTS staff on the line.

Available telephone numbers are: 024.3773 7068 (in Hanoi), 028.6255 5699 (in Ho Chi

Minh City), 0236.3553 666 – ext. 678 (in Da Nang City)

- Method 3: Over the counter: You must show your original identity card or citizenship card

at FPTS offices and sign under the Money Transfer Form.

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4. ACCOUNT LOGIN

4.1. Account login

There are two ways to use your account to log in EzFutures for derivative trading:

- Method 1: Access the link address https://ezfutures.fpts.com.vn, enter your account and

password in the same way as you trade underlying securities

- Method 2: When you are in the underlying securities trading system

(https://eztrade.fpts.com.vn), you can navigate to the derivative trading portal by clicking on the

Services Board and then Derivatives Trading menu.

4.2. Use one-time password for entire trading session

To quickly trade derivatives, you can activate a one-time trading password for an entire login

session. With this function, you need to enter the trading password for the first time of trading

only and you do not need to enter it for later orders to be sent:

- Method 1: In EzTrade, click on the account number 058C……. on the upper right corner of the

price board and choose “Trading password settings” option

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- Method 2: Click on the word “here” beneath the order confirmation screen

Then, enter the trading password in the “Confirm your change” field

5. EZFUTURES INTERFACE:

5.1. Interface:

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5.2. Technical chart

To further facilitate market tracking, EzFutures is integrated with technical analysis charts for

derivatives trading. You can pick up futures contract codes, time, chart type and indicators to create

technical charts that match your investment strategies.

You can split your chart to view more than one chart at a time by clicking on “Split” button on the upper

right corner. You can watch the technical chart of a futures contract on the left chart and the technical

chart of VN30 Index (or any other futures contracts). Using the Split function, you can also watch a

futures contract code in two different timeframes. And, if you want to view bigger chart, you can merge

it by clicking the “Merge” button that replaces the Split button when you split the chart.

For detailed description about FPTS Technical Analysis Chart 3.0, please click this link address

http://www.fpts.com.vn/products-services/securities-trading/technical-analysis-chart/.

6. PLACING AN ORDER

With a powerful order-placing screen, you can place a buying/selling order very, very quickly by

following the steps below:

6.1. Quick order

6.1.1. Switch off Orders-to-send function

- By switching off the Orders-to-send button, you can skip the pending order step and your order

will be directly sent to the trading system.

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6.1.2. Quick order methods

6.1.2.1. Place an order from the Market Watch price board, a multi-utility trading tool for

securities traders

- Step 1: Start an order

+ Method 1: Double-click on any Price cell or Volume cell of a futures contract code to start

an order

The system will automatically fill in the information that you have selected from the Market Watch

board in the Normal Order tab:

Buy/Sell: The order is the counterpart to the selected cell.

Contract code

Autofill price is the price in the cell you selected

+ Method 2: Right-click on the contract code and select Buy/Sell the contract to start the

order

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The system will automatically fill in the order information selected in the Normal Order tab:

Buying/selling order

Contract code

Autofill price is the best buying price (for the selling order) and the best selling price (for

the buying order)

- Step 2: Enter the quantity of contract you want to trade. You can modify the price if you want to

before you click Add to send the order.

6.1.2.2. Place an order on account status section

- Step 1: Click your mouse cursor on Buy/Sell cell in the Tradeable quantity section

The system will automatically fill in the order information selected in the Normal Order tab:

Buying/selling order

Contract code

Quantity: Buyable/Sellable positions

Autofill price is the best buying price (for the selling order) and the best selling price (for

the buying order)

- Step 2: Enter the quantity of contract you want to trade. You can modify the price if you want to

before you click Add to send the order.

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6.1.2.3. Place an order from Close All open positions

- Your open positions are displayed in the Close Positions on the account status section. You

can close each position or close all positions with a single click on Close All button

- The system will automatically select the best price to close the position right away:

Quantity = All open positions of the contract you selected

Price:

+ ATO: If the ongoing session is the at-the-opening (ATO) session (even the order is

placed prior to the time the market opens)

+ MAK: If the ongoing session is the continuous order-matching session (even the order

is placed during the lunch break time)

+ ATC: If the ongoing session is the at-the-close (ATC) session.

6.2. Place an order from the pre-created template

To help you place an ultrafast order and reduce trading actions, the system adds the Order Template

function which enables you to place orders from preset templates. Specially, the Order Template

feature enables you place a Compound order from which you can set your expected profit margin

for the order.

6.2.1. Create a template

- Step 1: Click on Order Template tab to open the template-creating screen

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- Step 2: Select the order type and fill in the required information to create the template

Step 3: Click Add to save the template.

6.2.2. Place an order from the Order Template tab

- Step 1: Select Use Template tab and click on Buy or Sell button to start placing an order

- Step 2: Your orders will be sent to the Orders-to-send section. You can change the quantity

or the price of contract and click Send to execute the order.

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6.3. Cancel/modify an order

- If your orders are not traded or fully traded, you can cancel or modify your placed order in the

Pending Order section.

7. TRADE SEARCH/ACCOUNT STATEMENT

7.1. Look up trade or profit/loss in the current trading day

- From the Trading Results tab in the account status section, you can look up such information

as opened positions, pending orders, intraday profit/loss, traded orders, etc.

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7.2. Look up Trading Log

7.3. Look up Money Transfer History

7.4. Manage your account

8. MARGIN OBLIGATIONS

8.1. Margin obligation

8.1.1. Types of margin

- - Initial Margin (IM) is the collateral value deposited for derivative trading.

IM = Number of positions * Price * Contract multiplier * Initial margin ratio

Wherein

Contract multiplier: 100,000 VND for VN30 Index Future

FPTS’s initial margin ratio: 14.3%

- Variation Margin (VM) is determined by VSD’s regulations and only added to the margin

requirement in case the position of portfolio in your account is in loss status.

VM = (Current position * Last traded price – Day-opening position * Daily settlement price of

the previous trading day – Position traded x Price traded) * Contract multiplier

- Margin Requirement (MR) is the total margin value you have to deposit to maintain your current

positions and calculated during trading session for the position portfolio in your derivative trading

account, including initial margin (IM) and variation margin (VM).

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MR = IM + VM

8.1.2. Margin collateral usage rate

Margin

collateral usage

rate=

Margin Requirement

Collateral at VSD + Cash at FPTS (if cash at

FPTS < 0)

- You need to keep a regular track of your margin collateral rate to have best trading plans

and avoid having your account designated warning or handling rates (See details at Part

8.4.3)

8.2. Derivative trading account parameters at FPTS

Content Regulatory rate Note

Initial margin rate 14.3%

% cash collateral at FPTS 5% of total

collateral

The rate between the “margin

collateral at FPTS” and the “total

margin collateral at FPTS and VSD”

8.3. Daily profit/loss settlement

Every day, the Vietnam Securities Depository (VSD) and FPTS calculate and record profit/loss

on your derivative trading account in the morning of the next trading day. If you make a profit,

the profit will be credited to your derivative trading account at FPTS. On the contrary, if you

make a loss, the loss will be offset by withholding the money from the collateral account at FPTS.

The profit/loss value is determined as follows:

- On the trading day before the last trading day, the value of position profit/loss settlement

is determined daily, based on open positions on your trading account and on the

difference between the daily settlement price (DSP) with the daily settlement price of the

previous trading day; or the difference between the settlement price of opening positions

with the daily settlement price (applied to positions opened during the day); or the

difference between the settlement price with the daily settlement price of the previous

trading day (applied to positions closed prematurely); or the difference between the

settlement price of closing positions with the settlement price of opening positions (applied

to positions opened and closed in the same trading day).

- At the last trading day, the value of the position profit/loss settlement is determined on the

basis of open positions on your trading account and the difference between the final

settlement price (FSP) with the daily settlement price of the previous trading day; or the

difference between the final settlement price and the settlement price (applied to positions

opened during the day); or the difference between the settlement price and the daily

settlement price of the previous trading day (applied to positions closed prematurely); or

the difference between the settlement price of closing positions and the settlement price

of opening positions (applied to positions opened and closed in the same trading day).

8.4. Other regulations

8.4.1. Fee and tax

- Fee of opening/closing a futures contract is determined by FPTS for specific period in time.

- Personal income tax per futures contract = 0.05% * Margin rate at VSD * Contract value

(collected as soon as a position is opened/closed)

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(Margin rate at VSD is determined by VSD for specific periods of time. The rate is 13% from

January 3, 2019).

- Other fees are determined by the Hanoi Stock Exchange (HNX) and the VSD for a particular

period of time.

8.4.2. 3.2. Last trading day

- The last trading day is the third Thursday of every month. For positions unsettled after the

last trading day, the profit/loss of such positions will be settled in the next working day,

which is also called the final settlement date of a futures contract.

8.4.3. Derivative trading account parameters at FPTS

Content Regulatory rate Note

Position opening max rate 80% When the margin collateral usage

rate is equal or greater than 80%,

you cannot open a new position.

Warning threshold 90%

When the margin collateral usage

rate is equal or greater than 90%,

FPTS will automatically transfer

money from the margin collateral

account at FPTS to the margin

collateral account at VSD.

Settlement threshold 100%

When the margin collateral usage

rate is equal or greater than 100%,

FPTS will automatically conduct a

forced position closing.

Position limit for individual

investor 5,000 contracts

Position limit for

institutional investor 10,000 contracts

Position limit for

professional investor 20,000 contracts

9. EXAMPLE

- Question: How much money, at least, do I need to transfer into my collateral account to start a

futures contract deal?

- Answer: Given the VN30 Futures Index at 900, you need to transfer VND17,000,000 to the FPTS

derivative trading account to start derivative trading.

Explanation:

o Step 1: You transfer/deposit VND17,000,000 into the derivative trading account at FPTS.

o Step 2: You transfer 17,000,000 * 95% = 16,150,000 VND from the derivative trading

account at FPTS to the margin collateral account at FPTS (5% or VND850,000 will be

retained at the FPTS derivative trading account)

o Step 3: You place a futures contract buying (or selling) order at a price of 900, your initial

margin will be 900 * 100,000 * 14.3% = 12,870,000 VND. Then, your margin collateral

usage rate = 12,870,000: 16,150,000 = 79.69%

- Cases that may happen:

If you buy a futures contract at a price of 900

o If sold intraday at 905, you will make a profit: (905 – 900) * 1 * 100,000 = 500,000 VND

o If sold intraday at 898, you will take a loss: (898 – 900) * 1 * 100.000 = –200,000 VND

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o If the position is kept till the end of the day and the daily settlement price is 910, you will

take a profit: (910 – 900) * 1 * 100,000 = 1,000,000 VND

o If the position is kept till the end of the day and the daily settlement price is 896, you will

suffer a loss: (896 – 900) * 1 * 100,000 = –400,000 VND

- Profit/loss will be settled at the margin collateral account at FPTS in the next trading

day.