Understanding Listed Derivatives

Learn how to embark on your listed derivatives trading journey with all the relevant knowledge that you need to know.

What is futures market?

A central marketplace that brings together buyers and sellers to transact an underlying asset for delivery in the future such as Bursa Malaysia Derivatives Bhd and CME Group.

FAQ

Trading in Global Futures – Frequently Asked Questions.

Account Opening

How do I open a global futures trading account with Kenanga Futures Sdn Bhd (KF)?

There are few ways for you to open a global futures trading account with us:

i. Visit us at Level 6, Kenanga Tower, 237 Jalan Tun Razak, 50400 Kuala Lumpur; or
ii. Contact your respective Futures Broker Representative (FBR) in KF; or
iii. Email us at futures@kenanga.com.my; or
iv. Call us at +603 2172 3820.

You are required to complete the account opening forms and submit back to us together with the following required supporting documents:

i. Photocopy of IC (front and back)/Passport; and
ii. Latest 3 months pay slip/bank statement or latest annual income statement/EPF statement/EA Form.

A notification will be sent to you once your global futures trading account is opened.

If I am an existing client of KF, do I still need to resubmit a new set of account opening forms in order to trade global futures products?

No, you are only required to complete and submit the Trading in Specified Exchange Form to us

If I have opened an account with KF and have been dormant for more than 2 years, what is the next course of action if I want to trade global futures products?

You are required to complete and submit the following documents to us:

i. Common Reporting Standard (CRS) Individual Supplementary Form
ii. Addendum to Futures Trading Agreement
iii. Trading in Specified Exchange Form

 

Products

What are the global futures products that Kenanga Futures is offering?

For CME:
We are currently offering selected products in Chicago Mercantile Exchange (CME) Group including Chicago Board of Trade (CBOT), New York Mercantile Exchange (NYMEX), Commodity Exchange Inc. (COMEX) and CME products such as:

i. Energy: Crude Oil Futures, E-mini Crude Oil Futures, Henry Hub Natural Gas Futures, RBOB Gasoline Futures, Heating Oil Futures and NYM Brent Last Day;
ii. Agriculture: Corn Futures, Chicago SRW Wheat Futures, Soybean Futures, Soybean Meal Futures, Soybean Oil Futures and Live Cattle Futures;
iii. Metal: 100oz Gold Futures, CMX E-micro Gold Futures, 5000oz Silver Futures, Copper Futures and Platinum Futures;
iv. Indices: E-mini Dow ($5) Futures, E-mini S&P 500 Futures, E-mini Nasdaq 100 Futures and USD Nikkei 225 Futures; and
v. Interest Rates: 2-year US Treasury Note, 5-year US Treasury Note, 10-year US Treasury Note, 30-year US Treasury Bond and Eurodollar.

For HKEX:
We are currently providing access to the following products:
i.Hang Seng Index (HSI)
ii.Mini Hang Seng Index (Mini-HIS)
iii.Hang Seng China Entreprise Index (HSCEI)
iv.Mini Hang Seng Index (Mini-HSCEI)

Will there be any market commentary provided for CME products?

Yes, a daily commentary with technical outlook on selected CME products will be emailed to you.

 

Deposit of Funds

What is the minimum amount that I need to deposit for my global futures account?

You are required to deposit a minimum initial deposit of USD500* to your global futures account. The banking details can be obtained from your respective FBR. 
*Initial deposit subject to change from time to time  

Do I need to provide any supporting documents for my deposit of funds?

Yes, you are required to provide the proof of deposit or bank-in slip to us.

Do I need to convert my equity balance in RM to USD in order to trade CME Group products?

Yes, you are required to convert the RM to USD to trade your selected CME Group products. The conversion rate will be quoted by our settlement bank in Malaysia on the day of conversion.

When will the deposited funds be updated in my global futures account?

All funds received during our operations hours between 8:30am to 6:00pm (Malaysian time, GMT +8) will be updated in your global futures account the same business day. Any additional deposit after 6:00pm will only be credited to your global futures account the next business day.

 

Placing Orders

How do I place a trading order with KF?

You can either place your orders via our dealing desk at +603 2172 3820 or use KF’s online electronic trading platform, KDF TradeActiveᵀᴹ

What is the dealing desk’s operating hours for trading CME Group products?

During daylight savings, our dealing desk operates from Monday to Friday, 6:00am to 5:00am (Malaysian time, GMT +8) the following day.

During non-daylight savings, our dealing desk will operate from Monday to Friday, 7:00am to 6:00am (Malaysian time, GMT +8) the following day.

 

Trading System

What are the key features of KDF TradeActiveᵀᴹ?

i. You can trade on a computer or mobile phone via internet by using the same User ID and password;
ii. You can trade both BMD and CME products on a single trading platform;
iii. All currencies will be combined as one base currency equivalent amount in the trading platform for easy monitoring;
iv. Our trading platform offers synthetic orders on top of the normal order type such as:

  • One-Cancel-Other (OCO);
  • Trailing Stop;
  • Bull & Bear with a combination of 3 types of orders (limit order, profit taking and stop loss) at one go; and
  • Time-To-Send order which can indicate a specific time to send your orders to the exchange;

v. Click trading using “Click To Trade” function as your order entry method;
vi. Real-time technical chart with indicators for both BMD and CME products; and
vii. Real-time calculation of profit & loss and account margining.

Can I login KDF TradeActiveᵀᴹ via my mobile if I forgot to log out from my computer?

The system only allows one login at a time. Hence, the login at your computer will be logged out automatically once you have login KDF TradeActiveᵀᴹ via mobile and vice versa.

Any additional charges impose for KDF TradeActiveᵀᴹ ?

There will be no trading platform charges for KDF TradeActiveᵀᴹ. However, we reserve the right to impose the live market data fee of CME products subject to CME prevailing rate.

What should I do if system related issue arises?

You may call our dealing desk at +603 2172 3820 for assistance.

 

Margin Policy

Where can I obtain the margin requirement of the CME Group products that I am interested to trade into?

You may get this information from CME Group website at www.cmegroup.com or alternatively you may contact your respective FBR for the latest information.

What is KF’s margin policy for global futures?

We practise full margin trading requirement and T+1 margin call policy. You are required to deposit the margin call amount latest by 5:00pm (Malaysian time, GMT +8) on T+1 day. You should also take note of the initial-maintenance margin requirement, whereby margin call is issued to restore the account’s equity to initial margin level when it falls below maintenance level. For CME Group products, initial margin requirement is set at 110% of the maintenance margin requirement.

What will happen if I do not deposit the required amount for margin call?

If margin call is not met on T+1 day, force liquidation will take place at 7:00pm (Malaysian time, GMT+8). In the event that the equity over margin falls below 20%, your positions will be forced liquidated anytime until no margin call level disregarding the cut-off time.

Any interest on margin shortfall / excess?

Yes, interest will be charged for any margin shortfall based on Base Lending Rate (BLR) per annum from trade date onwards. However, there will be no interest given for any margin excess in USD.

What if I have margin shortfall for CME market while I have excess margin in RM?

You will be notified on margin call for CME market. KF will then perform foreign currency conversion from your available excess in RM to meet the margin shortfall for CME market in accordance with the Terms and Conditions for Trading Futures and Options in Specified Exchanges. In the event that the margin excess in RM is not sufficient to cover the margin call in USD, you are required to top up the margin shortfall during T+1.

Please take note that this margin call in USD will be subject to interest charges as per Q19 above and further action will be taken as per Q18 above if the margin call is not met on time.

What if I have margin shortfall for both CME and BMD market?

You will be notified via two separate daily statements for both markets. In this case, your margin call will be combined and met by depositing the total RM required to us.

 

Withdrawal of Funds

How do I withdraw my USD funds from global futures account?

You are required to fill up the Cash Excess Withdrawal Request Form, indicating the currency and amount that you wish to withdraw. Thereafter, you will need to submit the withdrawal form to us for processing.

How long will the USD funds reach my bank account?

The USD funds may take up to 2 days before it can reach your bank account in Malaysia as the funds need to be repatriated from overseas. It will be automatically converted into RM on the day the USD funds reach your bank account.

What is the cut-off time for withdrawal of USD funds?

The cut-off time for withdrawal of USD funds will be at 10:00am (Malaysian time, GMT +8) on any business day in Malaysia unless it is a USD settlement holidays. After the cut-off time, the withdrawal of funds will be processed the next business day.

Sign up today

Open an account with an award-winning Malaysian listed derivatives broker with over 20 years of expertise in the Malaysian listed derivatives industry.

Open An Account Now