TAIEX Futures Futures Margin & Contract Specifications

What is the Taiwan Stock Exchange Capitalization Weighted Stock Index Futures (TAIEX Futures, “TX”)?

The TAIEX Futures (TX) is the most representative equity index futures contract offered by the Taiwan Futures Exchange (TAIFEX). It is based on the Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX).

To meet the needs of investors with different capital sizes and risk tolerance, TAIFEX has introduced:

• Mini-TAIEX (MTX): one-quarter the contract size of TX.
• Micro-TAIEX (MITX): one-tenth the contract size of TX.

Together, these three products form the TAIEX Futures Series, which feature high liquidity and leverage. They are among the most popular instruments for both hedgers and short-term traders.

What is the FTSE Taiwan Index Futures (FTSE Taiwan Futures)?

The FTSE Taiwan Index Futures (FTSE Taiwan), listed on the Singapore Exchange (SGX), was launched in response to the migration of MSCI Taiwan Index Futures from SGX to Hong Kong. SGX partnered with FTSE to introduce this product, which was officially listed on July 20, 2020.

Like the MSCI Taiwan Index Futures, FTSE Taiwan Futures are USD-denominated. The key contract specifications include:

Each index point is valued at USD 40.

Minimum tick size: 0.25 points, equal to USD 10 per tick.

Identical tick value to the former MSCI Taiwan Index Futures.

Factors Affecting Prices

1. Global Market Movements and Investor Sentiment

TX and FTSE Taiwan Futures are highly sensitive to international market fluctuations, particularly the performance of U.S. equities and major indices (e.g., S&P 500, Nasdaq, Dow Jones).
Example: A sharp decline in U.S. tech stocks often drags down Taiwan’s tech-heavy index, causing futures to fall. Traders often position themselves in the night session based on U.S. market trends.

2. Performance of Large-cap Stocks (e.g., TSMC)

Since TAIEX and Taiwan 50 are heavily weighted in large tech names, the performance of TSMC, MediaTek, Hon Hai, etc., directly drives futures prices.
Example: If TSMC releases stronger-than-expected earnings, both TX and FTSE Taiwan Futures may rally.

3. Foreign Institutional Investors’ Activity

Foreign investors are major players in Taiwan’s futures market, using it for hedging and arbitrage.
Example: Heavy foreign buying in futures combined with net buying in the cash market often signals a bullish outlook.

4. U.S. Economic Data and Federal Reserve Policy

Nonfarm Payrolls, CPI, PPI, productivity reports, etc., influence Taiwan’s futures via global sentiment.
Example: Strong U.S. data may fuel rate hike expectations, pressuring equities and futures.

5. Cross-strait and Regional Political Risks

Taiwan’s unique geopolitical situation means futures prices often react to cross-strait tensions, elections, or military events.
Example: Market volatility tends to rise before presidential elections, but may rebound once uncertainty clears.

6. Settlement and Technical Levels

Futures settle on the third Wednesday of each month, when institutional adjustments may cause divergence from the cash index. Technical indicators such as moving averages or support/resistance also affect short-term trading.

7. Earnings Announcements and Investor Conferences

Earnings from core index constituents (e.g., TSMC, MediaTek) influence both equities and futures. Positive surprises push futures higher, while conservative guidance may weigh on them.

8. Night Session and Global Market Reactions

TX and FTSE Taiwan Futures trade from 15:00 – 05:00 (next day), overlapping with U.S. market hours. This enables immediate reaction to global events and alignment with U.S. equity trends.

9. ETF Flows (Specific to FTSE Taiwan Futures)

FTSE Taiwan tracks the Taiwan 50 Index, closely linked to ETFs such as Yuanta Taiwan 50 (0050) and Fubon Taiwan 50. Institutional ETF rebalancing often spills over into FTSE Taiwan Futures for hedging.

10. Policy and Market News

Government measures (e.g., tech subsidies, export orders, capital spending data, or intervention by Taiwan’s National Stabilization Fund) can influence sentiment and spark sharp moves.

 

The TAIEX Futures, Mini-TAIEX, and Micro-TAIEX make up the most familiar and widely traded index futures series for local investors. They allow flexible participation according to capital size and risk profile, from beginners to professionals.

The FTSE Taiwan Index Futures, launched by an international exchange, provides another avenue for foreign and institutional investors to engage with Taiwan’s equity market, offering opportunities to trade alongside global participants.

Whether you are seeking short-term price opportunities, hedging exposure, or medium- to long-term index allocation, these four index futures contracts are essential tools for capturing the momentum of Taiwan’s equity market.

TAIEX Futures Margin

How much money is needed to trade futures? At the beginning, the required margin is the initial margin. While holding a position, the margin after deducting floating profits and losses must remain above the maintenance margin; otherwise, a margin call will be issued. For day-trading margin, only half of the margin is required, provided the position is closed before the market closes.

Domestic Futures

Foreign Futures

TAIEX Futures Contract Specifications

Here is a summary for traders of the contract specifications, exchange, trading hours, minimum price fluctuation, and available trading months for TAIEX FuturesFutures, Mini-TAIEX FuturesFutures, Micro TAIEX FuturesFutures, FTSE Taiwan Index FuturesFutures.

TAIEX FuturesLast Trading Day

Futures