Derivatives Malaysia- Futures

Gold Futures (FGLD)

FGLD is a small-sized Ringgit Malaysia (“RM”) denominated gold futures contract traded on Bursa Malaysia Derivatives, providing market participants exposure to international gold price movements at a lower entry cost.

The pricing of the FGLD contract in local currency removes the need for Malaysian participants to purchase foreign currency and therefore removing exposure arising from foreign currency fluctuations.

Each FGLD contract is equivalent to 100 grams of gold bullion. The small size has been designed to provide accessibility to all, but also flexibility for those wanting greater exposure. For the retail player wanting smaller exposure, the small size provides affordability. For the industrial user requiring larger exposure, the contract can be traded in multiple lots at a time (e.g. 5 lots, 10 lots etc).

As a cash-settled contract, no delivery of physical gold is required. Instead, the FGLD contract will be settled on expiry using the cash equivalent of the amount of gold purchased (e.g. 100 grams), calculated using the London AM Fix price (in USD) on the final trading day converted into RM.

For example: 

On the Final Trading Day, if the London Gold AM Fix price is USD1,200 per troy ounce and the exchange rate is USD1 = RM3.0800:

1. Conversion of the gold price from USD to RM will be: 1,300 x 3.0800 = RM3,696 per troy ounce.
2. Conversion from troy ounce into grams: RM3,696/31.1034768 = RM 118.82916 per gram (1 troy once = 31.1034768 grams)
3. Final Settlement Value will be RM118.85 per gram (rounded to the nearest RM0.05),
4. Contract Value will be RM118.85 per gram x 100 grams = RM11,885.

The London AM Fix price is the global benchmark for spot gold prices, and the settlement of the FGLD contract in accordance with this price characterizes the FGLD contract as an instrument that tracks the international gold market closely.

Crude Palm Oil Futures (FCPO)

Bursa Malaysia’s Crude Palm Oil Futures contract, or better known as FCPO, has been the global price benchmark for the Crude Palm Oil market since October 1980. The FCPO is a deliverable contract which is a traded electronically on Bursa Malaysia’s trading platform. With

FTSE Bursa Malaysia KLCI Futures (FKLI)

FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) Futures contract or known as FKLI given an equivalent exposure to the underlying FBM KLCI constituents. FKLI is a cash settled contract and is actively used by both institutional and retail investors in their trading portfolios.