Paconline - Derivatives Trading

Derivatives Trading

Derivatives Trading

What are derivatives?

The most commonly traded derivatives on exchanges are futures and options.

A futures contract is an agreement between two parties to buy or sell an underlying instrument at a specific time in future at an agreed price determined today. Its value is determined by the expected future price fluctuation in the underlying instrument such as commodity prices, interest rates, market indices and share prices.

Futures contracts in most cases are squared off prior to its expiry dates, meaning a trader who bought a futures contract closed off his position by selling the same quantity and type of futures contract he bought earlier or vice versa.

An option however, gives the buyer the right, but not the obligation, to buy or sell a certain quantity of the underlying instrument at a specific price within a specific time period by paying a premium. The buyer has the right to exercise the contract either buy or sell, or to allow the contract to lapse.

Why Derivatives Trading?

  • Leverage on low margin. A trader only pays low margin in order to trade in derivatives.
  • Easy access to commodity and financial markets.
  • Opportunity to trade during bullish and bearish markets. A trader has the opportunity to make profit during bullish and bearish markets depending on his trading position.

3 Steps to be a Derivatives Trader.

  • Open An Account
  • Pledge Initial Margin
  • Place Orders

List of Derivatives traded on Bursa Malaysia Derivatives offered by Inter-Pacific Securities Sdn Bhd are as follows:

# – Please click on the individual link to access the derivatives’ contract specification.

Derivatives Contract Specification #
Equity Derivatives
FTSE Bursa Malaysia KLCI Futures FKLI
FTSE Bursa Malaysia KLCI Futures OKLI
Single Stock Futures SSFs
Commodity Derivatives
Crude Palm Oil Futures FCPO
USD Crude Palm Oil Futures FUPO
Crude Palm Kernel Oil Futures FPKO
Options On Crude Palm Oil Futures OCPO
Gold Futures FGLD

For detailed information, please call us at +(603) 2117 1888 or email at


All clients must study and understand all risks associated with derivatives trading. Please seek independent professional advice before making investment decision.

Application Forms

Title Download
Application for Corporate Account Download
Application to open an Individual Account Download
Futures & Options Trading in Specified Exchanges Form Download
FATCA & CRS Self Certification Form (Corporate) Download
FATCA & CRS Self Certification Form (Controlling Person) Download
Change of Signature Form Download
Close Trading Account Download
Requisition for Change of Futures Broker Representative & Client Code Download
Withdrawal Request Download
Declaration BNM Exchange Administration Policy Form Download
Credit Application Form Download
Request for Electronic Statements Download