Frequently Asked Questions on FKLI & FCPO Futures

Dear Readers,

I have been often asked what is futures trading and how it can benefits my account and so for.

All of us use so many commodities like oil, petrol, crude palm oil, etc. Initially palmoil farmers were dependent of the future prices and at times they had to bear huge losses due to fluctuation of market. Then the concept of futures trading developed wherein people started speculating the price of commodities.

 

In this case, people speculate whether price of a commodity will increase or decrease in future. Here. People do not actually buy or sell the product. They take a futures contact. If they sell that means that they predict the fall in prices and if they buy it means that the prediction is made for a rise in the products in future.

There are two basic and most important terms to be known in this scenario.

The first one is hedgers.

Hedgers are the commodity producers, for an example, the farmer, the mining company or the oil company which produces the commodity. And speculators are the private investors who predict the price of that particular commodity.

People who speculate in the financial futures market like KLCI Futures would benefit from the following:

1. Fast profits or earnings

2. Fairer than other markets

3. Huge amount of contract and thus liquid market

4. Small commission charges

 

I have attached FAQs on trading and account opening for KLCI Futures and CPO Commodities.

 

If you need any assistance, email me your questions.

 

Trading Coach,

 

Martin Wong

Investmatic Management, SoHo, Ara Damansara, Selangor DE, Petaling Jaya 47301, Malaysia


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