What are derivatives?

The most commonly traded derivatives on exchanges are futures and options.

A futures contract is an agreement between two parties to buy or sell an underlying instrument at a specific time in future at an agreed price determined today. Its value is determined by the expected future price fluctuation in the underlying instrument such as commodity prices, interest rates, market indices and share prices.

Futures contracts in most cases are squared off prior to its expiry dates, meaning a trader who bought a futures contract closed off his position by selling the same quantity and type of futures contract he bought earlier or vice versa.

An option however, gives the buyer the right, but not the obligation, to buy or sell a certain quantity of the underlying instrument at a specific price within a specific time period by paying a premium. The buyer has the right to exercise the contract either buy or sell, or to allow the contract to lapse.

Why Derivatives Trading?

  • Leverage on low margin.
    A trader only pays low margin in order to trade in derivatives.
  • Easy access to commodity and financial markets.
  • Opportunity to trade during bullish and bearish markets.
    A trader has the opportunity to make profit during bullish and bearish markets depending on his trading position.

3 Steps to be a Derivatives Trader.

  1. Open An Account
  2. Pledge Initial Margin
  3. Place Orders

If you are interested to explore our PacOnline trading, please click HERE.

List of Derivatives traded on Bursa Malaysia Derivatives offered by Inter-Pacific Securities Sdn Bhd are as follows:

# – Please click on the individual link to access the derivatives’ contract specification.
DerivativesContract Specification #
Equity Derivatives
FTSE Bursa Malaysia KLCI FuturesFKLI
FTSE Bursa Malaysia KLCI FuturesOKLI
Single Stock FuturesSSFs
Commodity Derivatives
Crude Palm Oil FuturesFCPO
USD Crude Palm Oil FuturesFUPO
Crude Palm Kernel Oil FuturesFPKO
Options On Crude Palm Oil FuturesOCPO
Gold FuturesFGLD

For detailed information, please call us at +(603) 2117 1888 or email at [email protected].

Disclaimer:
All clients must study and understand all risks associated with derivatives trading. Please seek independent professional advice before making investment decision.

Application Forms
TitleDownload
Application for Corporate Account
Application to open an Individual Account
Futures & Options Trading in Specified Exchanges Form
FATCA & CRS Self Certification Form (Individual)
FATCA & CRS Self Certification Form (Corporate)
FATCA & CRS Self Certification Form (Controlling Person)
Change of Signature Form
Close Trading Account
Requisition for Change of Futures Broker Representative & Client Code
Risk Disclosure Statement
Withdrawal Request