FCPO is a Ringgit Malaysia (MYR) denominated crude palm oil futures contract traded on Bursa Malaysia Derivatives which provide market participants with a global price benchmark for the Crude Palm Oil Market since 1980 in the Commodity Futures Exchange. It is a legal agreement to buy or sell crude palm oil at a predetermined price at a specific time in future.

The size of each FCPO contract is 25 metric tons which is equivalent to 25,000 kg of crude palm oil. Every futures contract has a contract specification which lists down the set of terms and conditions of how the product will be traded like the contract size, minimum price fluctuation, daily price limits and trading hours. This contract specification can be obtained from Bursa Malaysia website.

FCPO traders will need to know the features of FCPO trading. Unlike stocks, FCPO trading is a two-way trading where traders can buy and sell FCPO depending on market conditions whether bullish or bearish. Traders can also take a long or short position against FCPO prices by determining the trading profit and loss. In a bullish market/uptrend, traders can long the position whereas in a bearish market/downtrend, traders can short the position. As FCPO contract is highly leveraged, traders need to manage the trading risks well.

Trading in Crude Palm Oil Futures Contract (FCPO) - Recorded Webinar

Trading in Crude Palm Oil Futures Contract (FCPO) - Recorded Webinar

Speaker: Choong Ty'ng Ty'ng

Webinar Date: 6/7/2021

Source: SIDC

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