Invest in Derivatives

Assume the investor has a portfolio of RM??? Either his own or his business portfolio.

Below link to get historical data.

http://bursadev.shareinvestor.com/market_information/market_statistic/derivatives

Assume you expected the market is bullish and the investor wants to long hedge. If expectation market is bearish, go fore short hedge. Assume investor enter the FM between July 2021 and September 2021.

Choose July 2021 icon as above. Assume bought on 1st July 2021.

So you will buy the KLCI futures price for September contract at 1521.50 points as I highlighted below.

	Contract Prices (RM)
Contract	Previous	Open	High	Low	Last	Settlement	Change
KLCI	1532.63	1533.34	1541.11	1531.84	1534.23		1.6
KLCI FUTURES (FKLI)
July,2021	1,533.00	1,535.50	1,539.50	1,527.00	1,529.00	1,529.00	-4.00
August,2021	0.00	1,534.00	1,537.00	1,525.00	1,526.50	1,526.50	1,526.50
September,2021	1,526.50	1,529.50	1,532.50	1,519.50	1,521.50	1,521.50	-5.00
December,2021	1,520.00	1,521.50	1,525.50	1,516.00	1,517.00	1,517.00	-3.00
# MTD Volume excludes NLT	Total

If Investor to hedge between August and September so has to use August Settlement price of 1526.50. For KLCI market price, pls refer from any website for KLCI price. If u buy in 1st July, pls refer KLCI for 1st July. Can use any prices between the highes and the lowest price for that day.

Upon maturity, assume the investor close the position by yesterday, so refer yesterday KLCI price and the price for FKLI from BMD website as follows. Pls use the settlement price for September. Calculation for hedging, pls refer in the notes.