FGLD is a small-sized Ringgit Malaysia (“MYR”) denominated gold futures contract traded on Bursa Malaysia Derivatives, providing market participants exposure to international gold price movements.
The FGLD contract months will be listed over a period of 12 calendar months. The specific months covered will be the current month, the next three consecutive months and all even months (i.e. February, April, June, August, October and December) within the 12 month period commencing from the current month. The current month (also known as the “spot month”) is generally the most active month in terms of price and volume movements but market participants can choose to also trade in contract months listed further in the future.
The FGLD contract can be traded over two sessions: 9:00am – 12:30pm and 2:30pm – 7:00pm.
FGLD is traded on CME Globex®, a global electronic platform. CME Globex® provide access to professional traders anywhere around the world to trade Bursa Malaysia Derivatives products.
The trading of the FGLD contract on Bursa Malaysia Derivatives comes under the regulatory supervision of the Securities Commission of Malaysia pursuant to the Capital Markets and Services Act 2007.
Margin deposits and payments relating to settlement of futures contracts are guaranteed by Bursa Malaysia Derivatives Clearing while the conduct of the futures brokers is also regulated.
The regulatory framework provides added protection and comfort to market participants.
In the futures market you will need to put up a small percentage of the notional value of the contract (known as Initial Margin). This margin will fluctuate according to volatility of the gold price. The “leverage” allows you to have greater exposure to gold at a fraction of the total value.
Unlike purchasing an “asset” based on today’s prices (eg. stocks or physical assets), a futures contract enables you to take a position now based on your view of the prices in the future. Traders have the opportunity to sell first in declining markets and this is the main trading advantage of futures contracts. It allows traders the flexibility in participating and taking opportunity in market trends and movements.
For example, if you wish to have exposure to gold and anticipate the gold price will go down in the future (e g in December), you could sell a December contract now to lock in today’s prices, and take your gains in December when the contract expires at a lower price. This ability to “sell” a contract without first having to buy it enables you to benefit from both downward (and not just upward) movements in price.
Clients may access FGLD from the following platforms:
Alternatively,you are advised to contact and enquire from your Futures Broker on how to access FGLD.
Variation Margins are paid in Ringgit Malaysia (MYR). Initial Margins are accepted in various currencies listed below:
Initial Margin is to be deposited with your licensed Futures Broker prior to trading. Please refer to your Futures Broker for other approved collaterals. All currency deposits for Initial Margin are subjected to hair cut rates as determined by Bursa Malaysia Derivatives Clearing from time to time.
The FGLD contract can cater to a variety of trading objectives and strategies. Examples:
There are many other ways to use the FGLD contract. Talk to your Futures Broker for more information to cater to your specific needs.
Step 1: Open a Futures Trading Account with a licensed Futures Broker of Bursa Malaysia Derivatives
Step 2: Deposit Initial Margin with your broker
Step 3: Start Trading FGLD
How do I learn more?
Please contact your preferred licensed Futures Broker who will advise and update you accordingly. You can also attend the various educational seminars listed on Bursa Malaysia’s website.