What is the Korean Kospi?

For South Korea, their main Index is the Korean Composite Stock Price Index, or "KOSPI" for short. It was originally started in 1964. The KOSPI has been modified a number of times over the years, its current form starting in 1994. The KOSPI is comprised of the 200 largest and most liquid companies traded on the Korean Stock Exchange, KRX. The index is based on market capitalization weighted. That means companies with the largest market value are the most influential on the KOSPI's returns. The companies are chosen based upon several factors, including liquidity. Also considered is how well that individual company represent its respective market or industry.

The KOSPI 200 is traded both as Futures and Options. Shadowtraders plans on primarily trading the Options. The Options are traded online in Korea much like the EMini Futures are traded online at the Chicago Mercantile Exchange (CME).

Intra-day charts and Technical Analysis Chart Indicators work on the KOSPI just like they work on the CME EMini's.

There are 13 Option Strike Prices (six -- in-the-money, one -- at-the-money and six -- out-of-the-money). These Strike Prices are set at 2.5 point intervals for the three near-term month contracts. There are also 7 Strike Prices (three -- in-the-money, one -- at-the-money and three -- out-of-the-money), at 5.0 point intervals for each quarterly month.

The major difference in trading the KOSPI is that it trades from 8:00pm to 3:00am EST.

The Kospi means Nitetrading for traders in the West.

Let's compare the S&P 500 EMini with a KOSPI 200 Option. A contract on the S&P 500 will require anywhere between $400-$2000/contract to trade, depending upon which brokerage you trade through. A KOSPI contract will be more in the range of $30/contract.

The S&P 500 pays out $12.50/contract. A KOSPI option pays $1.00, so you would need 12 contracts, or $360, to equal the S&P 500 EMini.

S&P 500 contract commissions range anywhere from $4.00 to $6.00/contract, depending upon the brokerage. 12 KOSPI contracts will cost around $3.60.

To date, trading the KOSPI has been limited to institutional trading. But through Nitetrading, the KOSPI is coming to you. Now you, too, can trade at night!

The KOSPI 200 trades very smoothly, in penny increments. Each penny represents 1 Tick. One Tick for the CME S&P 500 Emini is a 25 cent increment. Emini's sometimes tend to be choppy, surging 3 and 4 ticks at once. If you like to trade with the Trend, the KOSPI 200 is for you.

Trading the KOSPI, there is no need to quit your day job.

Instead of Daytrading, now you can be "Nitetrading the KOSPI".

Tired of watching reruns on television, playing video games, or PaperTrading with a Simulator? Then, "KOSPI Trading Online is for you."

Register today to join us at our next Live Webinar!
While you're waiting, we'll send you back an invitation to view our online OnDemand Webinar and to do our online Self Paced E-Learning Preview.

Sign Up Now!

Any questions should be directed to shadowsupport