FORTS options – what is it?

  The Russian stock market is developing rapidly: all conditions are being created for the effective work of brokers and traders, and new directions in the industry are emerging. Independent financial organizations and new derivative instruments have appeared. It’s not always easy to keep up with such progress, and often traders and ordinary people find it difficult to understand some definitions and terms. One frequent question is: what are FORTS options? This financial instrument appeared relatively recently and gained great popularity, but calling it a separate type of security would be incorrect.

How Are FORTS Options Different from Regular Ones?

  First, let’s recall what classic options are. An option is a security, a contract between two individuals or legal entities. One party receives the right, but not the obligation, to buy or sell an underlying asset at a specific price. This price is called the strike price and remains unchanged during the life of the option. The seller takes on a greater risk, as they may incur losses from the difference between the market and strike price. To balance the potential gains and losses between both parties, there is a concept of the premium — a sum of money paid by the buyer.
  Options first appeared on the London Stock Exchange in the early 19th century. In 1973, the first official independent options market — the Chicago Board Options Exchange — was launched, marking a new era for this instrument. By the 2000s, options had become widely used among brokers.
  Since each exchange offers its own trading conditions, options of a specific financial market are often named after that exchange. Therefore, the answer to “What are FORTS options?” is simple — these are options traded on the FORTS market.

Origin of FORTS Options

  The Russian stock market is divided into two segments: the equity market and the derivatives market of futures and options. FORTS is that very derivatives market.
  FORTS stands for Futures and Options on RTS — Futures and Options of the Russian Trading System. This organization no longer exists; in 2011, it merged with the Moscow Interbank Currency Exchange to form the Moscow Exchange, the largest financial holding in Russia.
  The RTS Exchange was the largest intermediary and essentially the only organization providing derivatives trading in Russia, which is why the name “FORTS” is still used today.

Trading Features on the FORTS Market

  The Russian derivatives market has existed since 2001. Today, investors have access to a wide range of high-yield trading instruments, but options and futures remain the core securities.
  Some confuse FORTS with the Forex market — some due to the similarity of names, others because both markets deal with forward contracts. Forex is for currency exchange at free-floating prices, while FORTS trades in securities. Although it also includes currency deals, they are conducted through special options.
  The FORTS market is an integral part of the stock exchange. Trading occurs on a centralized platform, unlike Forex. Broker and trader activities are overseen by the Federal Financial Markets Service. A brokerage firm must be a member of the National Association of Stock Market Participants and be rated by an official agency, while most Forex brokers can be legally equated to bookmakers.

Advantages of FORTS Trading

  The derivatives segment of the Russian stock market has attracted many investors and traders thanks to several key advantages:
  1) High liquidity of financial instruments, allowing traders to profit quickly after successful deals.
  2) High volatility of popular underlying assets. Price changes and profit from the difference between the market and strike price are the core drivers of options and futures trading.
  3) Minimal risk. In unsuccessful trades, the trader only loses the paid premium.
  4) Low entry threshold. FORTS trading is available with a deposit starting from 10,000 rubles, which is very affordable compared to other financial markets.
  Currently, FORTS options are traded on the Moscow Exchange. The derivatives market accounts for approximately 31% of its total turnover.