What are Futures Contracts? What are the types of Futures Contracts?
Weiloon (future trading experts and founder of Tell Me What is Future Contracts?)shared about trading future contracts and where you can find resources to open your trading account. Watch the video below:

Futures Contracts is a kind of paper agreement that can be identified in to different categories: Agriculture/Commodity Futures, Precious Metal Futures, Base Metal Futures, Equity Index Futures, Energy Futures, and many more.

The Agriculture/Commodity sector includes products like Crude Palm Oil, Corn, Wheat, Soybean, Soybean Oil, Coffee, Cocoa, Sugar, and a lot more. Precious Metal Futures Contracts cover gold and silver. Base Metal Futures Contract has copper and aluminum. For Futures Contracts on Equity Index, one of the most prominent things that you can see every day is KLCI, which is the index of the Share Market – Malaysia’s local share market. Others included in Equity Index are Hang Seng Index which indicates the share for Hong Kong, Nasdaq 100 Index for U.S., Dow Jones Industrial Average Index, etc. Lastly, we have Energy Futures Contract which covers Crude Oil and Heating Oil. These are some example of what is traded in the Futures Market.

Currently in some Malaysia, what we are trading on is palm oil, which is also called CPO. Another sector, which is very exciting, is FKLI. Some of the products that I mentioned like precious metals Gold and Silver, commodity futures like palm and soybean are traded in Chicago, U.S.A and are available to trade in Malaysia now through a licensed broker firm. Trading Futures Contract has gotten easier with the introduction of online trading system where you can trade anytime, anywhere with your P.C.

So, how do you trade Futures Contracts? First, for sure, you have to open an account. Secondly, you have to choose and understand the underlying instrument, which is the contract specifications – if there are liquidity issues, etc. You also need to have a lot of buyers and sellers in the counter to be able to buy and sell. So, you need to do your own risk and reward ratio. Lastly, and the most important: Cut loss. Cut loss. Cut loss.

Open an account with a licensed brokerage firm. To be sure you’re trading safely, kindly proceed to www.sc.com.my – the official website for Security Commission. Press on “Licensing,” then “Licensing Intermediates.” There’s a PDF file called “Dealing in Derivatives.” It provides a list of trading participants who are licensed by the Security Commission.

For Premium Webinar Members, you can watch the full recording of this training here:


Personal finance author and trainer

    5 replies to "What is Future Contracts and How Do You Trade in Malaysia?"

    • Tan Kok Leong

      I’m beginner, how to open an account which lower broker fee. Which futures to trade?

    • Eric

      Any good place to trade Hang Seng index/futures? Thanks.

    • Samsul

      I am trade with AmFutures. Not sure if I am got lowest fee but it ok for rm25 round lot for fcpo and rm15 round lot for fgld. Now not sure. But will know on monday when i will be trade again aftet a while in holiday mode

    • shah

      is it permitted for malaysian to trade foreign futures using foreign broker?

    • dan

      Im learning to trade futures. Can you please recommend some good/experience broker firm with cheaper fee.

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