The Stock Exchange of Thailand (SET) was established under the Securities Exchange of Thailand Act. Operations began on 30 April 1975. As a non-profit hub for securities trading and related services, SET serves to promote savings and long-term capital financing for the nation's economic development. SET encourages the general public to become shareholders of domestic businesses and industries. The SET's main operations include the listing of securities, supervision of information disclosure by listed companies, supervision of securities trading and monitoring of associated companies involved in securities trading, as well as dissemination of information and education to investors . Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay The Thailand Futures Exchange (TFEX) is a subsidiary of the Stock Exchange of Thailand (SET) and was established on May 17, 2004 as a derivatives exchange. TFEX is regulated by the Derivatives Law BE 2546 (2003). is under the supervision of the Securities and Exchange Commission (SEC). TFEX uses the same price/time priority rules as the stock market for order matching. Price/time priority refers to how orders are prioritized for execution. Orders are ranked first by price; Orders of the same price are then ranked based on when they were placed. When trading futures, you do not have to pay the full amount. This is similar to a margin account when trading stocks. An initial margin will need to be deposited before each trade. The futures price generally changes every day, the difference between the previously agreed upon price and the daily futures price is settled daily. The exchange will take money from one party's margin account and put it into the other's so that each party has the appropriate daily loss or profit. If the margin account falls below the maintenance margin level, a margin call is made and the account owner must replenish the margin account. This process is known as mark-to-market. TFEX is permitted to trade futures, options and options on futures where the permitted underlying assets are: Equities: indices and stocks Debt: bonds and interest rates Commodities: gold, silver and crude oil Others: Exchange rate and more as announced by the SEC Derivatives are one of three main categories of financial instruments, the other two being equity (i.e. stocks or shares) and debt (i.e. bonds and mortgages). The oldest example of a derivative in history is thought to be a contractual transaction of olives, entered into by the ancient Greek philosopher Thales and attested by Aristotle, who profited from the exchange. Bucket shops, outlawed a century ago, are a more recent historical example. In finance, a derivative is a contract that derives its value from the performance of an underlying entity. This underlying entity can be an asset, an index or an interest rate and is often simply called the "underlying". Derivatives can be used for several purposes, including securing against price movements (hedging), increasing exposure to price movements for speculative purposes, or gaining access to assets or markets that are otherwise difficult to trade. Some of the most common derivatives include forwards, futures, options, swaps, and variations of these such as synthetic collateralized debt obligations and credit default swaps. Futures contracts, forwards, options, swaps and warrants are common derivatives. A futures contract, for example.