KRXKOREA EXCHANGE (KRX) was founded to promote fair pricing of stocks and derivatives and stability and efficiency of trading and other transactions.
Also, KRX guarantees all payments and contract fulfillments for trading between exchange participants and counterparts.
What is Margin? : Meaning and Definition
Margin refers to a certain percentage of deposit that the exchange requests stock dealers to pay alongside contracts,
in order to prevent the risk of nonfulfillment of contract. The level of margin is commonly 10%, although it differs depending on the price
fluctuation of the exchange and underlying assets.
Type of Margin
Margin is classified into “Customer Margin” that customers pay members and “Transaction Margin” that members pay the exchange.
※ Margin can be paid instead of cash, only for substitute securities or foreign currencies authorized by companies.Daily Settlement
The clearing house announces the daily settlement price, based on the closing price after the exchange closes up. Based on this price,
provisional profits and losses of open interests of all transaction participants are calculated. If the level of margin account falls below the maintenance margin,
additional margin must be paid.
Covering
Investors can clear their positions through covering at any time of the transaction end of the final transaction date.
border-right Settlement System
This is to settle future positions, which are not cleared until the border-right settlement date (due date), and classified into Physical Delivery and Cash Ssttlement.
| Physical Delivery | Cash Settlement |
|---|---|
| Buyers and sellers take over real ones via the channels designated by the exchange. |
Paying in cash at the expiration, for the items, which do not allow physical delivery. |
Transaction Hours
| Division | Transaction Hours | |
|---|---|---|
| Weekday | border-right Settlement Day | |
| Index | 09:00~15:45 | 09:00~15:20 |
| Stock Future | 09:00~15:45 | |
| Bond Interest Rate/Currency | 09:00~11:30 | |
| Gold | 09:00~15:20 | |
| Lean Hog | 10:00~15:45 | 10:15~15:45 |
