Individual investors seem to be out of the “light” on the derivatives market

On the market Derivativeall 4 futures contracts dropped, of which VN30F2206 dropped 23.7 points to 1,253.1 points, matched orders of more than 320,000 units, equivalent to nearly 42,000 billion dong.

Every time the market plunges, investors rush to find negative factors for the index. This time, investors focused all eyes on the recommendation of Sell (Short) VN30 index futures contract from VPS Securities. This is the leader in the futures brokerage market share in Vietnam, with an average of more than 50% of the entire market, so just one “sneeze” of this market share “big man” can cause serious problems. significant impact on investors.

Many experienced investors liken that, in the derivatives market, individual investors are in the “light”, while institutions are in the “dark”. (Illustration image – Photo: Investment Newspaper)

“If there is a market, there will be speculation. VPS still has a large number of speculative customers and does not have a base account. However, that activity is also independent of defense. In the VPS email to customers, we I also emphasize that when we have an underlying portfolio that we don’t want to sell and hold for a long time, we should be on the defensive,” said Mr. Do Hoang Quan, Director of E-Broker, VPS Securities Joint Stock Company. , said.

Essentially, futures movements are an indicator of the underlying market. For professional investors, the current low liquidity and “weak” sentiment in the underlying market are very good conditions for fluctuations from derivatives to dominate.

“In the derivatives market, there are people who judge up and there are people who judge down. Sometimes when the underlying market is stable, but the derivatives side falls very hard, the people on the grassroots side will consider yes. Second, many times when derivatives go up a few dozen points strongly, the basis also reacts. Thirdly, there are derivatives Arbitrage activities, that is, they trade on the underlying securities. basis to make a profit on derivatives, it is a very professional operation, so it will certainly have an impact on the underlying market”, said Mr. Nguyen Trung Du, Director of Investment Services and Asset Management, Securities Joint Stock Company. Tan Viet securities, evaluation.

“Individual investors never have an advantage when trading derivatives, the advantage belongs entirely to institutions. I have not seen an individual investor earn interest from derivatives, while fees and taxes of derivatives is very large,” said Mr. Tran Tien Dung, an investor.

Many experienced investors also liken that, in the derivatives market, individual investors are like in the “light”, while institutions are in the “dark”, showing that for individual investors, this It’s really a game, not an investment.

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