FAQs (Futures Trading)

Futures Trading Frequently Asked Questions (FAQs)

  1. What is futures contract?
    A future contract is a standardized agreement, made on the trading floor of a futures exchange, to buy or sell a predetermined quantity and quality of a specified commodity or financial instrument at a future date.
  2. What is a Commodity?
    In the futures trading industry, a commodity is an article of commerce or a product that leads itself to standardization for the purpose of futures contract. Types of commodity include certain agricultural products (such as wheat, soybeans, cotton, sugar, cocoa), metals (gold, silver, platinum), and petroleum (crude oil).
  3. Where are The Futures Exchanges?
    A futures exchange is association of persons who participate in the business of buying and selling futures contracts or futures options. There are futures exchanges all over the world.

    • Malaysia: Bursa Malaysia Derivatives (BMD)
    • London: International Petroleum Exchange (IPE), London International Financial Futures and Options Exchange (LIFFE)
    • Japan: Tokyo Commodity Exchange (TOCOM)
    • Hong Kong: Hong Kong Futures Exchange and Clearing Limited (HKFE)
    • Singapore: Singapore Exchange Limited (SGX)
    • Germany: Eurex Exchange (EUREX)
    • United States: Chicago Mercantile Exchange (CME), New York Mercantile Exchange (NYMEX), Chicago Board of Trade (CBOT), New York Board of Trade (NYBOT) and Commodity Exchange (COMEX).
  4. I am new to Futures, and how I can get started?
    To get started you need to open an Individual Account with the following process:

    *For Corporate account opening, please contact 03-9212 2820/03-2162 1628

  5. How do I know the margin requirements for different contracts?
    Phillip Futures will send to clients a product list which includes margin requirement on regular basis via email. You may contact Dealing (603) 9212 2828/2162 1628 or Marketing (603) 9212 2820 for further details.
  6. Does Phillip Futures provide free charting services?
    Yes, Phillip Futures offers free charting tools integrated in our Phillip Nova trading platform. This service is provided as value added to our clients. Our clients will enjoy free live charting tools if they trade with us. For the list of live chart that we offer, click here to find out.
  7. Why trades Futures?
    Futures is used for the purpose of Hedging, Speculation and Arbitraging.Hedging is using futures limiting the risk that arises from large fluctuations in prices. It is a form of insurance to prevent adverse price movement. Taking a futures position opposite to the current physical position held.Speculation deals with changes in the expect price levels overtime and do not own physical delivery. They speculate profit from futures trading by buying contracts at lower price and selling at a high price. Arbitraging is simultaneous purchase and sell of the same instrument in different market to profit from price discrepancies.
  8. What are the benefits or services provided by Phillip Futures?
    We provide the following services to our clients:

    • 24 hours broking and execution services
    • Access Global futures products*
    • Free access to our online trading system, POEMS Professional.*
    • 90 products from various exchanges, click here for more information
    • Daily and weekly research reports, click here to find out more

         *Terms and conditions apply.

Advantages of Futures Trading

Leverage Futures market enables the ability of making large profits (or losses) for relatively small outlays of capital (the margin) with the existence of leverage.


  1. Where can I get the seminar information?
    We update seminar and coaching schedules regularly at our website. Please click here to know more about seminar information.
  2. How do I register the seminars or coaching session?
    Phillip Futures provides free education seminars and coaching sessions. You may register at the following link:

    • Online register for both seminar and coaching sessions
    • Call in to make an appointment for coaching sessions only, click here for more information
  3. Do I need to pay for one-to-one coaching session?
    Coaching session is conducted at no cost. It mainly caters for beginners who are interested in Futures and/ or Options trading but do not have any knowledge of these products or markets. We focus on the following topics:

    • Guidance on trading platform usage
    • Understanding Futures / Derivatives Trading
    • Market information in Trading
    • In-depth on Technical Analysis.

Feel free to contact us for appointments on weekday at your convenience time. Please click here for more information.


  1. What are the requirements to open a Phillip Futures trading account?
    The requirements for opening an individual/ corporate account are as below:

    1. Photocopy of NRIC and
    2. Latest Bank Statement
    1. Photocopy Passport and
    2. Latest Bank Statement
    Incorporated in Singapore/Malaysia/Others
    1. Latest Audited Financial Statements or Annual Report
    2. Certificate of Incorporation/Registration
    3. Memorandum and Articles of Association
    4. Directors’ Resolution
    5. List of Authorised Signatures and List of Authorised Traders
    6. Photocopies of NRIC/Passports of ALL Directors, Authorised Signatories, Authorised Traders and Shareholders
  2. How long does it take to open a Phillip Futures trading account?
    Individual Account: Usually it takes 3 to 5 business days to process a new account upon the receipt of clients funds and necessary documents.
    Corporate Account: We will require at least 5 business days to process. Under some circumstances, it may take a longer time.

Top-Up and Withdrawal

  1. How do I top-up my fund in my trading account?
    To facilitate settlement of your trading transactions/margin call, you may opt for any of the following settlement mode:

    • Cheque
    • Telegraphic Transfer Instructions (please click here for more information) Note: Please cross the cheque; strike-off bearer and make cheque payable to Phillip Futures Sdn. Bhd. Kindly indicate your Phillip Futures Account number and contact number on the reverse side of the cheque.
  2. How do I withdraw my money from futures trading account?
    You need to complete the withdrawal form. Please click here to acquire.Thereafter, please follow the steps below:

    • Fill up the withdrawal form with authorised signature
    • Return the form by fax at 03 2162 1678 or email to pfsb_dealing@poems.com.my Note: The cut-off time for daily submission is 10.30 am. Any submission after 10.30 am, will be processed on the next business day. Any remittance charges from the bank will be borne by client.
  3. How long does it take to process the withdrawal upon submitting the request form?
    The cut off time for withdrawal request is by 10.30 am daily, via email or fax. Please refer to the following for respective currencies instruction.

    • MYR Currency: Process within 1 business day
    • Foreign Currencies: Process within 2 business days. If clients submit their withdrawal request before the cut-off time, it will be processed within the same day. Otherwise, it will be processed on the next business day. Note: Any submission after 10.30 am, will be processed on the next business day


Call-In (Dealing Desk)

  1. Who should I contact for confirmation of orders and checking of net position?
    You may contact the Dealing Desk at (603) 9212 2828/2162 1628 (24-hours during weekdays)
  2. What is margin?
    Margin is the equivalent of a good faith deposit placed by the parties to a contract.
  3. Who determines the amount of minimum margin?
    The amounts of the minimum Margin deposits are determined by the respective Exchanges and are subjected to changes due to price movement and/or market volatility. Phillip Futures may set a higher Margin requirement.
  4. What is the definition of leverage?
    Futures contracts are leveraged to enable trading on Margin. The amount of initial Margin required to place a new trade is only a small percentage of the total contract value. As leveraging provides customers with the ability to utilize a small amount of capital to control a large amount of assets, customers need to be aware of the risk of leverage trading.

Type of Orders (Definition)

  1. Limit Order
    An order places to Buy/Sell at a price upon submitted or better. A Limit order sets the price at which the trader is willing to buy or sell at. Accordingly, whereas a price of Buy Limit order should be lower than the market price, a price of Sell Limit order should be higher than the market price.
  2. Stop Order
    A Stop order is a risk management order type which trader use to limit their losses or protecting their existing position. It can be used to initial new position. A Sell Stop usually place below current market price and a Buy Stop will be placed above current market price. In addition to risk management purpose, some people use Stop Order to trade on the market break.
  3. GTC Order (Good-till-cancel)
    A Good-till-cancel (GTC) order will remain active until the Trader decides cancel it.
  4. Market Order
    Market orders take priority over all other orders. When the market opens, they are executed at the opening price. During the trading session, they rise or fall to any price necessary until they are fully executed.
  5. Stop! Or Stop Limit!
    The Stop! Or Stop Limit! Order with exclamation mark (!) is a server stop order or synthetics Stop Order. Those orders are offered by Phillip Futures, not offered by the exchange. This Stop Order will rest in Phillip Futures server, thus there will be some delay for those orders to be filled. Phillip Futures will not guarantee for the orders to be filled and we are not liable for it. These orders are offered to clients goodwill. For Stop Limit! Order, clients are encourage putting a stop order with a faraway gap.

Couldn’t find an answer that you are seeking for?
Please contact: (603) 9212 2828/9212 2820 for further details or email: phillipfutures@poems.com.my.

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