Futures are contracts whereby the buyer or seller are obligated to transact an asset at a predetermined future date and price. At Phillip Futures, we offer a variety products such as metal, commodity, index, agricultural and energy futures for you to trade.
Free First 5 Lots Brokerage Fees for Bursa Products*
Applicable for FKLI, FCPO & FM70 only*
Terms & Conditions Applied*
Futures is a financial or commodity contract where the price is derived from its underlying assets.
Trading future is where a buyer and seller of a financial or commodity contract come together and agree on a price today, or deliver or settlement of the contract in the future.
It is a standardized agreement to buy or sell a quantified amount of instrument at specified price on a specified future date. The quantity and quality of the goods are specified in the contract and the price and delivery period are set at the time the contract is opened.
| Stocks | Futures | |
| Buy | Part ownership in the company |
Entering into a contract. A contract to purchase the underlying commodity at a certain price in future |
| Capital |
To pay full amount 100% |
5% – 20% of the full contract value |
| Position |
Initiate buy position only |
Can initiate to buy or sell |
| Exchange | Bursa Malaysia Stock Exchange |
|
Leverage – Enable you to trade higher valued products with a comparatively smaller amount of capital outlay.
Low Transaction Cost – Commission charges are relatively small as compared to share market. Commission for futures contracts are based on a fixed fee per lot per side, rather than a percentage of the contract value.
Availability to Short Trading Position – Capitalize on opportunities during a downtrend market. This can be used as hedging tool to minimize losses in the underlying product.
Global Market Accessibility – You can get access to a wide variety of products from commodities to international stock market exchanges.
