HSI down 500 points today but FKLI only down 2.5
SSE crash 3% last friday but we are green.

Very unpredictable.

http://www.hlebroking.com.my/derivatives/

The value of FKLI is sentiments based. If market sentiments bullish its several points above the current value of FBM KLCI. If bearish then will be at a discount compared to KLCI. This makes it very unpredictable.

The only predictable thing is, all contracts will have a final value based on the last hour of the last trading day for that particular contract. So, if you have enough holding power and you are sure market will go up, you can buy(long) a contract that will expire on 31 march, you could actually choose to not look at FKLI and just look at our KLCI index instead. And if you think market will go down, you can choose to sell(short) a contract instead.

Bear in mind the words that are bolded . If you overleverage you'll find yourself broke, or cutting loss at the worst possible price.

This post has been edited by Medufsaid: Mar 1 2010, 11:13 AM

Its all about money management. If you allocate big money and play a small amount of lot(s) you can still sleep peacefully.