Trading in Commodity Derivatives – How to Trade the Global Price Benchmark Crude Palm Oil Futures Contract (FCPO)

Investor Education & Capacity Building Programmes

14
Feb 2023

10:30 am - 12:00 pm

SIDC LAMS

Speakers : Choong Ty’ng Ty’ng

MYR FOC *Fee is not inclusive of 6% SST

Derivatives Programmes for Students

This initiative is supported by the Capital Market Development Fund (CMDF)

Commodity derivatives is categorised into agriculture and precious metals. Crude Palm Oil Futures (FCPO) is one of the agriculture commodity derivatives which is actively traded on Bursa Malaysia Derivatives Exchange. It is the most liquid and successful crude palm oil futures contract in the world, consolidating Malaysia’s position as the global centre for palm oil price discovery.  In the year 2021, a total of 15.6 million FCPO contracts or 390 million tonnes of crude palm oil was traded, which is equivalent to more than five times the global production of crude palm oil.

FCPO is widely traded by fund managers and financial institutions for managing price fluctuations in the market. You can trade FCPO anywhere around the world via the CME GLOBEX® platform. However, having no experience and knowledge in trading FCPO can increase your potential risk and lead to potential losses. You may get into trouble by taking on risks that are poorly quantified. How much do you know about FCPO and why should you trade in FCPO?

Let’s discover FCPO from its key features and the contract specifications to the trading strategies, specifically when to buy and sell the contracts and evaluate the risk and returns while trading FCPO. All these and many more will be covered in this webinar to equip you with the right knowledge and skills in becoming an informed FCPO trader.

   

 

Programme Objective

This programme is designed to equip university students with the right knowledge and skills in commodity derivatives specifically in crude palm oil futures (FCPO) trading and prepare them to become an informed FCPO trader.

Mode

Live Webinar

Target Audience

  • University students who have little to no understanding of trading in the derivatives market
  • Individuals who are interested in trading in the derivatives market

Learning Outcomes

Upon completion of the programme, participants will be able to:

  • Describe commodity derivatives in Malaysian market
  • Identify the key features and contract specifications of FCPO
  • Explain the pricing and valuation of the futures contract
  • Select the appropriate trading strategies to trade in FCPO contracts
  • Calculate the profit and loss of the FCPO trading

Competencies

  1. Foundational (Product) – Capital Market Products (Proficiency Level 3)
  2. Foundational (Product) – Capital Market Fundamentals (Proficiency Level 3)
  3. Functional (Process) – Derivatives Dealing (Proficiency Level 2)
 

 

 

10.30 am – 12.00 pm

Overview of Commodity Derivatives Market in Malaysia

  • Agriculture
  • Precious metals

Trading in Crude Palm Oil Futures (FCPO)

  • FCPO – the most actively traded commodity derivatives product
  • Key features and the contract specifications of FCPO
  • FCPO pricing and valuation

Strategise Your FCPO Trading

  • When to buy and sell?
  • Understanding the market news affecting FCPO prices
  • Risks and return of FCPO trading

Activity: FCPO Trading Simulation

  • Applying the appropriate trading strategy
  • Determine the profit and loss of FCPO trading

Q&A Session

About the Speaker

Choong Ty’ng Ty’ng

Founder and Managing Director of Axcelearn Sdn Bhd

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*The SIDC reserves the right to amend the programme as deemed appropriate without prior notice

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