Home > Futures Broking & Trading > Trading Examples > FCPO
Overview
Corporate Finance Advisory
Corporate & International Banking
Equity Markets & Derivatives
 
 
 
 
 
 
 
Investors Services
Group Treasury
Research
Transaction Services
 
 
Private Banking
 
 
Asset Management
 
 
 
Corporate Client Solutions
TRADING EXAMPLES
 
FCPO
16 May 2006

Crude Palm Oil Futures (FCPO)

Directional Trade
If you view that the commodity price, Crude Palm Oil (CPO) will rise due to favourable export data or increased demand, you are of the opinion that the market will rise and you decide to BUY.

Bullish View
Examples:

20 Jan 2004-Buy -1 May 2004 @ 1,700
21 Feb 2004-Sell -1 May 2004 @ 1,800

The following is the Capital Outlay for 1 FCPO contract:
Note: Your Initial Margin deposit with CIMB Futures: RM3,000 (differs from time to time)

Transaction
Breakdown

RM

Brokerage *RM46 x 2

92

Exchange FeeRM3 x 2

6

Clearing FeeRM1 x 2

2

Total 

100

* Brokerage rate is negotiable


 1,800 – 1,700 = 100 points x RM25 per point

Gross Profit

RM2,500

Less

RM100

Net Profit

RM2,400


If you view that the commodity price, Crude Palm Oil (CPO) will decline due to lower commodity demand (surplus harvest), you are of the opinion that the market will fall and you decide to SELL.

Bearish View
Examples:

2 Jan 2004-Sell -1 Apr 2004 @ 1,750
26 Jan 2004-Buy -1 Apr 2004 @ 1,700


 1,800 – 1,700 = 100 points x RM25 per point

Gross Profit

RM1,250

Less

RM100

Net Profit

RM1,150

back