Futures Trading (Malaysia)

Futures trading is a powerful and flexible investment tool. It can make short term, medium term and long term investment. Besides, futures trading is very easy to learn and trade.
In Malaysia, Most popular is Two products which are FKLI (Futures Kuala Lumpur Index) and FCPO (Futures Crude Palm Oil).

How to start?
You only open an account with an investment broker firm and totally Free of Charge (FOC). You only provide a photocopy of IC and fill up the opening form then can trade after deposit margin. Certain products have certain margin requirement and there is different according.

Advantages of Futures Trading
First, we only FOCUS on a certain market. For example, we trade FKLI then we only focus on that market movements, not same like shares market as it have thousand over counters to monitor and analyse.

Second, futures trading is very flexible because it can buy (Long) or sell (Short) anytime, and not same like equity market as only can buy first sell later. Futures market is allow to short sell which sell first buy later. For example, you can foresee market will drop today, so you can sell the FKLI today and buy back later after market rebound then you make money in bearish market.

Third, Easy to make money. Low Commission rate charge on Futures market. Only earn 1 point then you can cover the cheaper commission charges while equity market brokerage charges is based on your purchase/sale contract value which amount can be huge.

FKLI is refer to our KLCI (Kuala Lumpur Composite Index). So both movement are almost same.
Minimum price flutuation 1 bid is 0.5point. Then it 1 point = RM50.
Margin requirement only RM2400 per contract; Intrday margin requirement only half of full margin.
Most active contract month is spot month ,expiry on end of the month (Last Day) and Cash-Settlement.
Trading Hour: 8.45am-12.45pm, 2.30pm-5.15pm
FCPO
Minimum price flutuation 1 bid is 1 point. Then it 1 point = RM25.
Margin requirement only RM5250 per contract; Intrday margin requirement only half of full margin.
Most active contract month is third month ,expiry on 15th of the every month and Physical delivery.
So we are not encourage to hold any position on spot month to avoid physical delivery.
Trading Hour: 10.30am-12.30pm, 3.00pm-6.00pm

*Margin requirement is change time to time.