KSE & KOSDAQ
Individual investors
|
Stock Market |
KOSDAQ Market |
Trading Days |
Monday to Friday |
Order placement 1) |
Available from 07 : 50~09 : 00 |
Trading Session |
09 : 00 ~ 14 : 50 |
Auction Period |
14 : 50 ~ 15 : 00 |
After-hour Trading 2) |
15 : 10 ~ 16 : 00 |
15 : 10 ~ 16 : 00 |
Minimum Trading Unit 3) |
10 shares, 1 share |
1 share |
Types of Orders 4) |
Limit Order |
Limit Order |
Market Order |
Market Order |
Conditional Market Order |
Conditional Market Order |
Closing Price Order |
Closing Price Order |
Daily Price Limit |
¡¾ 15% |
¡¾ 15% |
Types of Orders |
Transaction Tax |
0.15% |
0.30% |
Farms & Fishery
Special Tax |
0.15% |
|
Stock Price And Corresponding Tick (SP : Stock Price)
|
SP |
Tick |
Stock Price And Corresponding Tick
(SP : Stock Price) |
Less than 5,000 (KRW) |
¡¾5 |
5,000 ~ 9,999 |
¡¾10 |
10,000 ~ 49,999 |
¡¾50 |
50,000 ~ 99,999 |
¡¾100 |
100,000 ~ 499,999 |
¡¾500 |
500,000 or more |
¡¾1,000 |
Stock Price And Corresponding Tick (SP : Stock Price)
Order Priority 5) |
1) Price |
2) Time |
3) Size |
4) Client |
Notes
- 1) Order Placement
- Even though the trading session begins at 09:00, the Korea Exchange receives orders from 07:50.
- 2) After-hour Trading
- During the after-hour trading session, all transactions are executed at the closing price of the regular session.
During the after-hour trading session, previous orders that have been placed during the regular trading session are not valid; therefore, investors must input new orders.
- 3) Odd-lot Shares
- Odd-lots of shares with a stock price of over W100,000 per share are tradable on the Stock Market
- 4) Types of Orders
- Limit order: Investors designate the exact price and quantity
- Market order: Investors designate only the quantity without price. The orders are executed at the market price.
- Conditional market order: Investors designate the exact price and quantity. If the execution is not filled, the amount unfilled is converted to a market order.
- Closing price order: This type of order is available from 15:10 to 16:00 (i.e. after-hour trading). Investors designate the quantity at the day's closing price.
- 5) Order Priority
- Price: The highest bid and the lowest offer have priority over other orders.
- Time: When orders are placed at the same price, the earliest bid/offer have priority over others; however, in the following cases, the time of order placement does not make
any difference; all orders that are placed before the regular trading session (07:50 ~ 09:00) and during the last 10 minutes of the regular trading session (14:50 ~ 15:00)
- Size: When orders from investors are placed at the same time and at the same price, the larger order will have priority over others.
Client: When orders from clients and the brokerage's own funds are placed at the same time and at the same price, orders from clients have priority.
OTC Market
OTC (Over The Counter Bulletin Board Market)
The OTC Market was established in 2000 for companies that have issued "OTC Stock" and are not listed on the Stock Market or KOSDAQ Market.
Characteristics
- Trading Hours : 9:00 - 3:00pm
- One to one auction trading
- No daily fluctuation limits
Bond Market
Bonds in Korea can be classified into three main types depending on the issuer: government bonds, special public bonds and corporate bonds.
Government Bonds
Current major government bonds are as follows: Treasury Bonds, National Housing Bonds (Types I & II), Foreign Exchange Stabilization Bonds (FESB), National Housing Fund Bonds, and Grain Securities.
Special Public Bonds
lic entities and include Seoul Metro Railroad Bonds, Public Waterworks Bonds/Regional Development Bonds, Public Roads Bonds, Monetary Stabilization Bonds, and Financial Debentures.
KOSPI 200 Index Futures & Option
KOSPI 200 is a market value weighted index composed of 200 underlying stocks accounting for over 70% of the total market capitalization. The base period and base index are 3 January 1990 and 100 respectively.
Stock Index Options Contract
Options contracts are listed in the two months prior to each of the following months: March, June, September, and December.
The exercise method for the KOSPI 200 options is European - the contracts being exercised only on the expiration dates. The first or last trading day is the same as that of futures contracts. An options contract is 100,000 won multiplied by the option price (or premium). The minimum price change is 0.05 points for price quotations greater than or equal to 3.00 points, and 0.01 point for changes of less than 3.00 points. There is no price limit
in the options market, but the price quotation must be within the theoretical options price range if the KOSPI 200 should rise or fall by 15%.
Corporate Bonds
Corporate bonds are classified according to guarantee, expiration dates, collateral or variability of interest rates, or special rights as follows:
Guaranteed vs. Non-guaranteed Bond, Long-Term Maturities vs. Short- Term expiry dates, Fixed Rate vs. Floating Rate, and Bonds with Special
Rights.
Trading Hours for KOSPI 200 Futures and Options
Days |
Regular Day |
Last Trading Day |
Monday to Friday |
9:00 am ~ 3:15 pm |
9:00 am ~ 2:50 pm |
Order Transaction
Only limit orders are permitted. The maximum size for orders should be less than 5,000 contracts of the net open interest, with exceptions given to
arbitrage traders or hedgers. Orders are processed via individual auctions through an automated trading system, priority being given to price over
time. Non-stop trading is the norm until closing, even on a contract's last trading day. To minimize the market impact of temporary imbalances
in the flow of orders, circuit breakers have been installed to halt trading for twenty minutes should the KOSPI drop 10% or more from the previous
day's closing price for ten minutes. Furthermore, a "sidecar" mechanism is in operation, delaying for five minutes all programmed order executions
when the most active futures contract climbs by 4% or more from its base price for one minute. Apart from the cases mentioned above, Single Price Allocation Period (aggregation period) is applied for the following: opening of morning session (8am-9am); re-opening after circuit breaker
(ten minutes); and re-opening after sidecars (five minutes).
Korea Exchange Member's Margin
The Portfolio Risk Based Margin System is used to determine margin requirements for futures and options trading. The margin for any given
account is therefore based on the likelihood or risk that the portfolio will experience adverse movements in the market. Three types of margin
are available for members: options premium margin, the amount required to offset all option positions at current market prices; spread
margin, the spread quantity multiplied by the spread rate; and risk margin, the maximum probable loss of the futures and options portfolio.
Members are required to deposit margins, either cash or substitute securities, with the Korea Exchange before 12:00 pm on the day following
the day of contract.
Customer's Margin and Settlement
A customer's margin consists of the option premium margin and the risk margin. When placing orders for futures and options trading, the following
initial margin must be deposited with the securities company:
Bids or offers of futures: minimum 15% of the contract value (a minimum 5% of which must be in cash);
Bids of options: cash equivalent to or greater than the contract value;
Offers of options: cash or substitute securities equivalent to or greater than the maximum probable loss, according to Korea Exchange rules.
Investors are required to maintain a minimum margin. If the balance in the margin account drops below the maintenance margin, additional
deposits are required by 12:00 pm the next trading day, or by 10:30 am on days having no afternoon session. The maintenance margin is calculated by the portfolio risk-based margin system with the margin interval being 10% of the KOSPI 200. If on the other hand the investor's account has
excess margin, the surplus may be withdrawn so long as the required minimum margin is maintained to guarantee the performance of the investor's positions. Futures contracts are marked-to-market daily to limit default risk, and the deadline for daily settlement is 12:00 pm the following trading
day.