Question 1

How do I start trading DW18?

Accepted Answer

Starting to trade DW18 is simple and does not require opening a new specific account. If you already have a stock trading account with any brokerage firm in Thailand, you can log into your trading application (e.g., Streaming), search for the DW18 symbol (such as HSI18C2606A), and place your orders exactly as you would for normal Thai stocks.

Additional Trading Information:

You can trade DW18 using either a Cash Balance or a Cash Account. (Note: If a specific DW series is flagged under the Cash Balance rule (T1, T2, T3), investors cannot use a Cash Account to purchase more, but they can still sell their existing positions.)

For investors interested in trading DW18 who do not yet have a securities trading account, you can easily open one online via the Krungthai NEXT application: [Click here for details on how to open an account]

Question 2

How do I start selecting the right DW18 for my trading style?

Accepted Answer

You can gain a trading edge by following these 3 simple steps on the ktxinvestme.com website:

Assess the Direction: Analyze the trend of the underlying asset. If you expect the price to rise, buy a Call DW. If you expect the price to fall, buy a Put DW.

Filter the Specs:

For Short-term Trading (Day Trade): Focus on DW18 series with a high 1% Sensitivity for fast price movement, combined with an Effective Gearing level that matches your risk tolerance.

For Medium to Long-term Trading (Run Trend): Opt for DW18 series with a longer time to maturity and low Time Decay(ideal for holding positions overnight), along with an appropriate and acceptable Effective Gearing level.

Check the Price Guideline: Always consult the Price Guideline before executing a trade to ensure the board price is fair and to help estimate your initial entry and exit points.

Question 3

What is the maximum potential loss when investing in DWs, and will there be margin calls?

Accepted Answer

A major advantage of investing in DWs is that your maximum loss is strictly limited to the initial amount you paid for the DW (the Premium). Unlike trading Futures, there are never any margin calls.

(However, please note that if you hold a DW until its maturity date and it is in an Out-of-the-Money state, the value of that DW will drop to zero, resulting in a total loss of the invested capital for that specific trade.)

Question 4

Why does the DW price remain unchanged when the underlying asset moves?

Accepted Answer

This can be caused by a combination of factors within the pricing structure, including:

Low 1% Sensitivity or Insufficient Movement for a Tick Change:If a DW series has a low 1% Sensitivity, the percentage movement of the underlying asset (whether up or down) might not be large enough for the calculated DW price to cross over to the next "Tick Size" on the trading board.

Foreign Exchange (FX) Impact: Because DW18 is linked to foreign underlying assets, its price is also tied to exchange rates. If the underlying asset moves in a favorable direction for the investor's position (Call or Put), but the Thai Baht significantly "appreciates" against the underlying currency (e.g., JPY, HKD, or USD), the potential profit may be offset by exchange rate losses.

Purchasing at an Overprice: If an investor enters a trade during a period of high buying pressure that pushes the board price higher than the "theoretical price in the guideline," the DW might seem to stand still. This occurs as market mechanisms adjust the price back to its fair value, even if the underlying asset moves in a profitable direction.

Offset by Time Decay:If an investor holds a DW for too long, the accumulated time decay can offset the profit generated by the movement of the underlying asset, making the DW price appear stagnant.

Question 5

What is "1% Sensitivity" and how is it used?

Accepted Answer

1% Sensitivity is a specialized metric designed by KTX to help investors quickly evaluate strategies and better visualize their entry and exit timing. This figure indicates: "If the underlying asset moves by +/- 1%, approximately how many ticks will the DW price move?"

How to use:It allows you to immediately select the "speed" of a DW that matches your trading style, particularly for short-term speculation, without the need for complex calculations. (For example: If a DW has a 1% Sensitivity of 5, a 1% movement in the underlying asset means the DW price on the board will move by approximately 5 ticks. This enables you to efficiently plan your entry bids or set your take-profit targets in advance.)

Question 6

What are the tax advantages of investing in foreign assets through DW18?

Accepted Answer

Normally, investing directly in foreign securities and repatriating the profits to Thailand subjects those earnings to personal income tax under Thai tax regulations.

However, investing through DW18 involves trading securities listed on the Stock Exchange of Thailand (SET) and settled in Thai Baht. Therefore, any capital gains derived from trading DW18 are entirely exempt from personal income tax.

This advantage allows investors to maximize their net returns and eliminates the complexity of filing foreign income taxes, making it a hassle-free alternative to direct offshore investing.

Question 7

Why is the Effective Gearing not constant (Dynamic Gearing)?

Accepted Answer

Effective Gearing changes dynamically because it is calculated using the following formula: (Delta x Underlying Price x FX) / (DW Price x Exercise Ratio)

When the underlying asset price moves, the exchange rate (FX) fluctuates, or the DW price gradually decreases due to Time Decay, the Gearing value will always adjust accordingly.

Note: A DW with a very low price (e.g., a DW that is in a Deep OTM status) often displays an extremely high Gearing figure. However, this comes with a high level of risk, as the DW may expire worthless (value = 0).

Question 8

What are the trading hours for DW18 linked to foreign assets?

Accepted Answer

DW18 can be traded during the standard operating hours of the Stock Exchange of Thailand (SET). However, the market-making liquidity system operates at full efficiency only when the underlying foreign market is also open.

(For example: During the Hong Kong market's lunch break or a Japanese national holiday, the Bid/Offer spread on the Thai board may widen, or market making may be temporarily paused until the foreign market reopens.)

Additional Tip: Investors can verify the exact "Market Making Hours" for each specific DW18 series directly on its Price Guideline page on our website.

Question 9

How does the foreign exchange rate (FX) affect the price of DW18?

Accepted Answer

When investing in DWs linked to foreign underlying assets, the exchange rate (e.g., JPY/THB, HKD/THB, KRW/THB, VND/THB) is a key variable factored into the price calculation.

If the Thai Baht depreciates (weakens) against the underlying currency, it has a positive impact on the DW price.

If the Thai Baht appreciates (strengthens) against the underlying currency, it has a negative impact on the DW price.

Investors can confidently rely on the Price Guideline as their primary trading reference. The price tables on the ktxinvestme.com website automatically calculate and reflect real-time FX movements for your convenience.

Question 10

Is Time Decay deducted every day? Does it include weekends?

Accepted Answer

Currently, DW18 features an investor-friendly policy: we do not apply Time Decay on weekends or the official holidays of the foreign stock exchange used for settlement. This allows investors to comfortably hold your positions over these non-trading days without worrying about Time Decay during those periods.

(Note: The Time Decay calculation policy is subject to change in the future. Investors should always verify the terms and conditions before investing.)

Question 11

What is the minimum investment required for DW18?

Accepted Answer

Investing in DW18 requires a very low initial capital, making it highly accessible. Since the Stock Exchange of Thailand (SET) mandates a minimum trading volume of 100 units (1 Board Lot) on the main board, you can begin trading with a very small amount. For example, if the DW18 series you are interested in is priced at 0.50 THB per unit, you can start investing with just 50 THB (excluding brokerage commissions).