Important/Key information about the product:

Exchange-traded derivatives refer to financial contracts that are standardized and traded on regulated exchanges. These derivatives derive their value from an underlying asset, index, or reference rate. The most common types of exchange-traded derivatives are futures and options contracts.

Futures Contracts:
Futures contracts are agreements to buy or sell an underlying asset at a predetermined price on a future date. They typically involve commodities (such as oil, gold, or agricultural products), stock indices, interest rates, or currencies. Futures contracts are standardized in terms of contract size, expiration date, and settlement procedures. They provide participants with the opportunity to speculate on price movements, hedge against potential risks, or engage in arbitrage strategies.

Options Contracts:
Options contracts give the holder the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a predetermined price (strike price) within a specified time period. Options are commonly used for hedging, speculating on price movements, or generating income through options writing. Like futures contracts, options contracts are standardized and traded on exchanges.

PhillipCapital: Your Gateway to Exchange-Traded Derivatives
At PhillipCapital, we understand the significance of exchange-traded derivatives in today's financial landscape. PhillipCapital offers direct access to over 11 derivatives exchanges worldwide, including major exchanges in the US, UK, Singapore, Thailand, Malaysia, Europe, and more. With PhillipCapital, you can trade in a wide range of futures and options contracts based on indices, commodities, foreign exchange, energy, and other assets. These contracts cater to various users, including hedgers, arbitrageurs, and speculators. As a direct clearing member of all these major exchanges, PhillipCapital enables seamless access to exchange-traded derivatives contracts, providing you with the necessary tools to participate in global derivatives markets.

Important/Key information about the product:

Standardized Contracts: Exchange-traded derivatives are characterized by standardized contract specifications, including contract size, expiration dates, and settlement methods. This standardization promotes transparency, liquidity, and ease of trading.

Global Market Access: Exchange-traded derivatives offer access to a wide range of markets across the globe. Major exchanges in countries like the US, UK, Singapore, Thailand, Malaysia, and Europe provide a platform for trading derivatives based on indices, commodities, foreign exchange, energy, and more.

Risk Management: Derivatives play a vital role in managing risk by allowing market participants to hedge their positions. Hedgers, such as producers or consumers of underlying assets, can use derivatives to protect against adverse price movements, ensuring more stable financial outcomes.

Speculation and Investment Opportunities: Exchange-traded derivatives provide opportunities for speculators and investors to capitalize on market movements and generate potential profits. By leveraging the inherent leverage of derivatives, traders can amplify their exposure to price fluctuations and potentially enhance their returns.

Price Discovery: Derivatives markets, particularly futures contracts, contribute to price discovery by reflecting market expectations and sentiment. The interplay of supply and demand for derivative contracts helps establish transparent and efficient market prices.

Market Liquidity: Exchange-traded derivatives offer high liquidity due to the presence of numerous market participants. This liquidity ensures competitive pricing, tight bid-ask spreads, and the ability to enter or exit positions swiftly.