If I made 2500 a day I would sleep peacefully with or w/o Futures lol

This post has been edited by wodenus: Apr 11 2009, 06:12 PM

hi all, few questions to ask about FUTURES:

1. Now is the month of April, but how come there are people buying contracts for month of May, June and even until September?

2. What does FCPO, FMG3, FMG5, FMGA mean?

3. Knowing that buying and selling's commissions are RM20 each, what if i'm buying 2 contracts and selling 2 contracts? Does it still RM40 total for commission fees?

That's for at the moment.... Thanks in advance.

hi, i have one urgent question to ask:

Mr. A buys one contract at market's open price (900 point).

The moving status drops at 890 point at 10am.

However, the market closes at 910 point.

I just wonder, if Mr. A earnsor loses?

Mr A earn nothing from it, as he didn't close the open interest aka he didn't sell the long contract at all.

Price movement doesn't dictate your loss or gain. It i your transaction aka buy and sell price aka a closed transaction sell-buy price that is your final result.

noted with thanks.

Got it.

I have one question again, regarding FUTURES.

It doesn't have to buy a contract at a low price then only sell it at high price, right?
A successful contract can be done at first sell it at a high price, then buy it at low price when the status meet the low price, am I getting it right?

Yup

Buy first -> long
Sell first -> short

Any website to view FKLI ?

http://www.klse.com.my/website/bm/

Prices are delayed by 15 mins

Aurora97 is very right, although I disagree about the "sleeping without worries" part.

Feb 26, 2007.....the Shanghai Composite Index plunged 10% in a day, and the next day our own KLCI plunged more than 100 pts at the opening bell. You may be able to cushion the blow with that massive RM17,500 per contract, but you'll sure as hell won't be able to sleep soundly during such turbulent times, because you're staring at thousands in paper losses per contract. Buy more contracts and you'll either save yourself or dig a deeper hole. The only measure that can save you (not without some "injuries", of course) are stop-loss points.

How do I know this? Because I was there, holding not one but 5 contracts at the time. And WITHOUT the aforementioned stop-loss points. Painful doesn't even begin to describe it.

For all the beginners who wish to venture into FKLI trading, I have one advice to all of you. You have to make sure you damn well know what you're doing. This instrument, together with other derivatives such as warrants and options, not to mention Forex (even more so), are about as close to gambling as you can get. Leverage is a double-edged sword, sure you can earn a lot quickly if things go your way, but if they don't, tough luck. With these FKLI contracts, you are always fighting against time, and that time is 30 days or less if you buy the spot month contract. And as aurora97 put it, your biggest weapon is CAPITALISATION, and you'll need tonnes of it.

And a last tip: Never meet a margin call. You may have heard that saying before, but I have experienced the truth of it. Trust me, you don't want to go through that. The sayings are there for a reason.

If you want instant price, you need to open a Futures account and register at their website

if wanna trade futures.. better to trade emini

I need to highlight further...

"the stop loss mechanism" may not even work at times because of sudden volatile price flactuations that may not trigger it. The drop in the price is so rapid that stop loss trigger forgone totally.

I heard about the theory part, the actual workings i don't really know.

So trade with caution

This post has been edited by aurora97: Apr 23 2009, 10:03 AM

hi, i have 2 questions:

1. Let's say, Mr. A sell 1 contract at 970 point on 29 April 2009, he means to buy 1 contract at 960 point but the moving status has not triggered 960 point.

What happened with Mr. A if until 30 April 2009, he still doesn't manage to buy the contract at any point lower than 970 point? Will he loss for the April contract?


2. What does MO mean? What are the purposes to buy or sell at MO?

This post has been edited by debbieyss: Apr 23 2009, 03:45 PM

1. Assume Mr. A sell 1 contract at 970 on 29 Apr 2009 for Spot Month. On 30th Apr 2009 ending day, the system will auto match and initiate a buy on whatever the price is. If below 970, still profit. Otherwise, margin call if insufficient balance.

I think can negotiate to bring the contract over to next month with the broker.

2. MO = Matching Order before opening. Similiar like trading shares now. You can buy/sell at the price listed.

MP = Matching Price before closing for the day. e.g. If yesterday I buy at 967 during MP, today I can sell at 986.50 during MP. 19.5 pts minus fees for ~RM400 profit per contract.

1. Not like that. On the end of the month, contract will be settled if your have open contract not close, by using the settlement price of the last trading half hours, aka they will take average price of the last hour to determine the settlement price.

If you continue to have interest on short side, you can short the May contract, aka roll over your April contract to May.

Cherroy, so does it mean if i already sold 1 contract and I don't manage to buy it at a lower price on the last trading day, this contract can be rolled over to May and I won't gain any loss?

Also, I still don't understand what is MO.

This post has been edited by debbieyss: Apr 24 2009, 01:18 AM

Rollover doesn't mean its free your just exchanging the same contract just different months to avoid a cash settlement, from what i see how its done... its very rare to see Retail clients to roll over their contracts unless they are high networth people (& know what they r doing).

For those ikan bilis they normally stay out at the end of the month, because the price flactuations tend to be extremely volatile because the big boys (Foreign Funds) are moving the market (i.e. rolling over their contract).

Oh by the way, if you roll over u still have to pay for price differences.

Thanks for letting me know.

Do you mind to explain further on MO?