Can anybody help me clear my doubts here ?
If I buy RM2,000 contract for FKLI and then if the price drops to RM1,900. Do I need to cover back the RM100 ?
What is the minimum deposit required to trade futures ?
FKLI , Futures
FKLI , Futures
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Aug 1 2014, 12:15 PM
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#1
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Junior Member
144 posts Joined: Jan 2014 |
Can anybody help me clear my doubts here ?
If I buy RM2,000 contract for FKLI and then if the price drops to RM1,900. Do I need to cover back the RM100 ? What is the minimum deposit required to trade futures ? |
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Aug 1 2014, 06:07 PM
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#2
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144 posts Joined: Jan 2014 |
QUOTE(sayuriko @ Aug 1 2014, 01:23 PM) Hi, Total contract value of RM2000.RM2000 contract for FKLI mean total contract value of RM2000 or 40 contracts? If you have enough margin in your account, you don't need to pay extra. The minimum required to trade futures depends on which product you trade, if FKLI mean RM4000, if not mistaken. If my account has exactly RM2000 and it drops to RM1900. What if don't pay to cover the losses ? What's going to happen ? Where can I learn from A-Z about futures trading in Malaysia ? Any books and so on ? This post has been edited by ohemmgee: Aug 1 2014, 06:08 PM |
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Aug 3 2014, 05:49 PM
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#3
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QUOTE(sayuriko @ Aug 3 2014, 03:27 PM) Hi, Quite a good explanation. Thanks.You have to maintain a minimum amount of margin (RM4000) in your account, so you won't get margin call, unless it drop below the minimum. If let say you have an amount of RM6000 in your account, it can have a maximum loss of RM2000. Let put it in this way (example), Let say now FKLI is 1880, and after awhile in drop 10 points to 1870. You have Long the position at 1880 but it moves against you now. Calculation: 10 points x RM50 x 5 contract (let say you bought 5 contracts) =RM2500 (loss) So which mean that you need to top up another RM500. *you will receive a margin call* [RM6000 - RM2500 = RM3500 (which is not enough of margin in your account, thus you need to top up another RM500)] If I receive a margin call and I don't top up, will the bank force sell my contract ? Or what will happen ? |
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