Bursa Derivatives Education Series

Author: bursaderivatives   |   Latest post: Mon, 31 Aug 2020, 10:12 PM


Why Trade FKLI?

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1. Global Access

FKLI is traded electronically on CME GLOBEX®, a global electronic trading platform. Accessing CME GLOBEX® is easy and allows individual and professional traders anywhere around the world to access all Bursa Malaysia Derivatives’ products.


2. Prudent capital management

An insurance company or fund manager with an equity portfolio will sell the FKLI as a hedge to protect itself against a potential decline in the equity portfolio value.


3. Maximise volatility trading

Traders may use the FKLI to gain leveraged exposure arising from price volatility in the underlying FBM KLCI index.


4. Lower cost of entry

An institution, which is in a tight cash flow situation and is unable to obtain the physical stocks now, may buy the FKLI as a temporary substitute for holding stocks until it has the available funds. The FKLI position would be liquidated later once the stocks are acquired. This method entails a cheaper entry (via only initial margin deposits) with similar exposure to the value of the underlying stocks MINUS the cost of an outright purchase.


5. Ability to short sell

Trading the FKLI allows you to sell first and purchase later to close out your trading positions.


Get Started to Trade Derivatives Now!

Step 1

Open a Futures Trading Account with a licensed Futures Broker of Bursa Malaysia Derivatives.

Step 2

Deposit the Initial Margin with your Futures Broker.

Step 3

Start trading FKLI.


How do I learn more?


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