What is a futures contract?
It is an agreement traded on an organized exchange to buy or sell assets such as commodities and shares at a fixed price but to be delivered and paid for later. There are two types of settlement for the futures contract, ie cash settlement and physical delivery.
Benefits of Futures Trading
Leveraging increase potential returns
Initial margin is required to long or short a futures contract. You do not need pay the full contract value of the futures contract. With the minimal margin requirements, investors can increase the potential return of trading futures contract.
The opportunity to profit in 2 way
In Futures market, you have the option to long or short the market to gain. If the market is in bearish condition, investors can short a futures contract first and subsequently to buy back the same futures contract at a lower price to set off the position. Vice versa, if the market is in bullish trend.
Protect your portfolio of investment
The risk of price changes of your investment can be protected by purchasing the same value of futures contracts of the similar natures. Your investment could be shares or actual commodities.
Services and Products Available
AmInvestment Bank Futures Broking provides the convenience of trading online and offline to all clients. We connect the clients to futures trading by providing the access to live price feeds of the futures market and charting services. Just a few clicks at www.amequities.com.my and you will be able to maneuver your trading plan.
Products available
- Kuala Lumpur Composite Index Futures (FKLI)
- Crude Palm Oil Futures (FCPO)
- Gold Futures (FGLD)
- Mini FBM Mid 70 Index Futures (FM70)
