Trading Products

Trading Products

Learn about the features of the various investment and trading products offered by Phillip Futures

It is important for customers to know the inherent risks and the characteristics of Bitcoin Futures. As with any investment product, clients are responsible for their own risk management.

  1. Bitcoin is a relatively new product and is known to be volatile. As much as 30% of price movement has been recorded within a trading day.
  2. Bitcoin cash trades 24 hours including weekends. However, its Futures contracts listed in Cboe and CME have specific trading hours. This may result in wide price gap that could potentially be as high as 25% or beyond.
  3. Liquidity is also an inherent risk for Bitcoin Futures. Near month Bid/Offer spreads had been recorded to be as wide as 120 points, and up to 1000 points for the far month expiry. This may transcend into very high cost, especially for customers trading the CME Bitcoin Futures contract, which is 5 times bigger than the Cboe contract.
  4. Please note that there will be no call in trading support for both the Cboe Bitcoin and CME Bitcoin contracts. Customers would need to manage the risks and choose to trade during active hours.
  5. Do note that the Initial margin (IM), which is based on Cboe or CME daily settlement price, may experience huge fluctuations daily.

Futures contracts are traded on an intra-day “First In, First Out” basis. This means that for an intra-day trade, a customer’s first position bought or sold will be the first to be liquidated.

Example: Glenn bought 2 contracts of December MSCI Singapore Index on 2 different days.

Day 1 purchase price: 306.5
Day 2 purchase price: 306.0

Before the end of the main trading session of Day 2, he proceeds to close one contract at the price of 306.3. In this scenario, Glenn will make a profit of 3 ticks (0.3) as the contract bought on Day 2 is the first contract to be closed out instead of the contract bought on Day 1.

Please refer to the relevant exchange website and search for the particular contract specifications or you can refer to the margin list under POEMS (log in to your own account) > Futures or Forex/ Gold > Attention. 

Commodities trading involves undertaking an agreement to buy or sell a set amount of a commodity at a predetermined price and date. Buyers use these to avoid the risks associated with the price fluctuations of the products or raw materials while sellers try to lock in a price for their products.

For more information, please visit our Introduction to Futures.

We offer commodity products in three main categories:

  1. Energy Futures contracts: Crude Oil, Brent Crude Mini Crude Oil, Natural Gas, Mini Natural Gas, Kerosene, Gasoline and Crude Palm Oil.
  2. Metal Futures contracts: Gold, Mini-sized Gold, Silver, Mini-sized Silver, Copper, Palladium, and Platinum.
  3. Agricultural Futures contracts: Corn, Soybeans, Soybean Oil, Soybean Meal, Oats, Wheat, Cotton, Orange Juice, Cocoa, Coffee, Sugar and Red Hard Winter Wheat.

The Foreign Exchange market, also referred to as the “Forex" or “FX" market is the largest financial market in the world with a daily average turnover of approximately US$5.3 trillion. Foreign Exchange is the simultaneous buying of one currency and selling of another.

For more information, please visit our Introduction to Forex.

Spot Forex/Bullion contracts are closed out on a First In, First Out (FIFO) basis, as illustrated in the example below:

The investor bought 100K of EURUSD at 1.3320 on Monday. On Tuesday, he bought 100K EURUSD at 1.3310. Within the same day on Tuesday, he sold 100K of EURUSD at 1.3312. This trade of selling 100K EURUSD at 1.3312 will be squared off with Monday’s long EURUSD at 1.3320 based on FIFO basis.
 

A Spot Forex contract involves the trading of 2 currencies for settlement within 2 business days (known as T+2). However, if the client has an open position that is held past the New York market close at 5:00pm (New York Time*). Phillip Futures will do a rollover for clients automatically and a swap is charged/earned in the process. (For more information on swap, please visit our Forex & NDFs page.) Thus the client will not need to worry about monitoring the contracts expiry dates. Unlike Futures contracts or equities, clients with Spot Forex open positions can hold their positions for as long as they want, provided they have sufficient margins in their accounts to finance the position(s).

Our Spot Forex Dealing Desk is open for 24-hour trading daily, from Sundays at 5:00pm to Fridays at 5:00pm (New York Time*). Prices on our trading platforms are available and orders are matched within the abovementioned trading hours. 

Any order submission, withdrawal or amendment outside trading hours will not be accepted. Good-Till-Cancel (GTC) orders that remain active over the weekend are subject to prevailing market price when trading resumes. All active orders will get done in accordance with the prices from our liquidity providers. Any prices made available outside the trading hours will not be matched.

Trading options allows an investor to gain leverage in a contract without committing to a trade. Furthermore, risk is limited to the option premium for the buyer of an option. (Writers of options face unlimited downside risk.) In addition, trading options allows investors to protect their positions against adverse price fluctuations when it is not desirable to alter the underlying position.