Since October 1980, Bursa Malaysia Derivatives has been the trading platform for the FCPO Crude Palm Oil Futures Contract, which is traded in Ringgit Malaysia (MYR) and offers market participants a global pricing benchmark for the Crude Palm Oil Market. Fund managers and financial institutions have been actively using FCPO as a risk management tool for managing market price changes for more than 40 years, as have companies in the edible oils and fats industry.
Bursa Malaysia Derivatives is the first exchange in the world to offer physically delivered commodity derivatives contracts with sustainable requirements mandated for delivery. This will happen on April 1, 2021, when the Malaysian Sustainable Palm Oil (MSPO) certification requirement applies to all FCPO physical delivery. Furthermore, the FCPO Contract complies with Shariah.
Worldwide Access to FCPO
On the international electronic trading platform CME GLOBEX®, FCPO is traded electronically. Anywhere in the world, professional and individual traders can easily access all Bursa Malaysia Derivatives products through CME Globex®.
Risk Management
FCPO is a risk management tool that plantation firms, refineries, exporters, and millers can employ to protect themselves from the risk of unfavourable price movements in the physical market.
Trading with Leverage
By using a tiny initial margin and leveraging exposure to the notional value of the underlying asset, you can increase the impact of a given price shift. You can start trade FCPO as low as RM 1,750!
Quick Exposure to the Market
Through FCPO, proprietary traders, global fund managers, and commodities trading advisers can all get instant access to the volatile Crude Palm Oil market.
Use Both Bull and Bear Markets to Your Advantage
As a structured product, this gives retail investors access to the crude palm oil market. For an optimistic view on the movement of the price of crude palm oil, buy low and sell high, and vice versa for a negative view. Unlike other security, you can make money in both bull and bear market.
Sustainable Method of Physical Delivery
Under the terms of the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme, palm oil mills that meet the standards for Oil Palm Management Certification (OPMC) shall supply all physical deliveries of Crude Palm Oil (CPO) under the FCPO contract.
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