Central News Agency (CNA) - The Taiwan Futures Exchange (TAIFEX) announced this afternoon that it will reduce the contract size for gold products and non-financial stock futures, effective July 6. The value of a single contract will be lowered to under NT$200,000, aiming to alleviate the capital pressure for traders entering or adjusting positions. Additionally, the exchange will expand the strike price series for gold options, offering more trading choices. TAIFEX stated in a press release that recent surges in gold prices and the Taiwan stock market have pushed the current contract sizes for gold products and non-financial stock futures to over NT$1 million. This not only presents a higher risk for single positions but also requires a larger amount of margin. TAIFEX explained that by reducing the contract size for gold products and non-financial stock futures, traders will no longer need to bear excessively large contract amounts at once. They can establish positions based on market fluctuations and their own capital status, thereby lowering the capital burden and operational threshold for single entries. Furthermore, during periods of increased market volatility, traders can enter or exit positions in smaller amounts, gradually increasing or decreasing their holdings for more precise and flexible trading and hedging. TAIFEX clarified that in conjunction with the contract size reduction, adjustments for gold products will be based on open interest after the close of the July 4 night session. Original holdings of one contract of USD Gold Futures or NTD Gold Futures will be adjusted to 10 contracts. Original holdings of one gold option contract will be adjusted to 5 contracts. As non-financial stock futures do not have night trading, the adjustments will be based on open interest after the close of the July 3 day session, with one contract being adjusted to 10 contracts. All these adjustments are scheduled to take effect before the market opens on July 6. (Editor: Z