Unlike trading in the underlying securities, where profits can only be made from the appreciation in stock prices, derivative securities trading allows investors to profit even when the market declines. When anticipating a market downturn, you can take short positions in derivative contracts. If the market moves in the predicted downward direction, you can lock in profits by closing the position at a price lower than the initial entry price.
When participating in derivative securities trading, you will pay the following costs:
- Transaction fees from the securities company are fees that you must pay to the securities company where they open an account and execute trades. The fees are applied to both buy and sell positions.
- Transaction fees from the stock exchanges are based on the tariff set by the Hanoi Stock Exchange (HNX).
- Position management fees (overnight) and margin asset management fees from Viet Nam Securities Depository and Clearing Corporation (VSDC): are based on the regulations of VSDC.
- Taxes are applied according to regulations of derivative services.
- Other service fees.
Please refer to detailed Tariff here.