Flexible Commodities Trading

This refers to trading commodities based on your investment profile. You can access a variety of options and futures. You have the possibility to go long or short using a broad range of commodities that include metals, emissions, agriculture, energy, and others.

You can trade silver, platinum, and palladium on the spot market or trade the price of precious metals against all significant currencies, such as the US dollar, euro, yuan, and others. You have the chance to follow the progress of a certain commodity, the entire commodity sector, or a specific subsector.

Benefits of Trading with KBOFX

Leveraged gain and loss: When trading futures, the percentage return on your initial investment may be far higher than the movement in the underlying index, whether it is rising or falling. In contrast to options, where a buyer's losses may be limited to the premium paid, losses on a futures contract could be limitless for both the buyer and the seller.

Hedging: By establishing a contrary position in a comparable asset, investors can use the risk management technique of hedging to offset losses on their investments. Potential gains are often reduced as a result of the risk reduction offered by hedging. Hedging is paying a premium in exchange for the security it offers.

Margin calls: A margin call happens when the value of the securities in a brokerage account drops below the maintenance margin, necessitating the deposit of extra funds or securities by the account holder to satisfy the margin obligations.

Complexity: Trading methods for options and futures can be sophisticated. Prior to trading, make sure you are completely informed of the risks and, if necessary, seek advice from a competent professional.

Commodity Products Traded with KBOFX

Grain Derivatives - Grain-related futures and options are traded on KBOFX.

Energy Derivatives - Key energy market nodes in Southeast Asia are covered by futures and options traded on KBOFX.

Over-The-Counter - Services for off-market registration, clearing, and settlement that are flexible and secure.

Interest Rate Derivatives - Financial contracts whose value is based on some underlying interest rate or interest-bearing asset.

Short-Term Derivatives - Interest rate futures and options that can be used to hedge against fluctuations in short-term interest rates, the overnight cash rate, and to manage cash exposures.

Bond Derivatives - Interest rate futures and options providing exposure to the debt markets.

One Session Options - Options in the European style that are only available for one trading session and expire before the start of the following session.

Grain Derivatives

KBOFX Grains futures and options can be an affordable solution to control risk, safeguard your business from volatility, ensure future cash flows, or profit from shifting market prices.

Opportunities for grain producers and consumers

  • Reduce price risk by protecting your business against price changes and exercising more control over the prices you pay or get.
  • Trading on a market that is centrally cleared by KBOFX Clear (Futures) and daily margin collection to enable participants to meet their commitments will help you manage credit risk.
  • Control risk associated with production and consumption through hedging against price changes without having to grow or consume actual grains.
  • Manage foreign exchange risk - KBOFX Grains contracts can be hedged, lowering the risks associated with foreign exchange.

Opportunities for speculators and traders

  • Generate alpha: KBOFX Grains futures and options provide affordable exposure to a different asset class, opening up the possibility of higher returns or more diversification.
  • Trade relative value spreads: KBOFX Grains contracts offer the chance to build time, quality, or geographic spreads, allowing you to place trades based on your perception of price trends or the relative performance of local and international derivatives.
  • Control basis risk: KBOFX and the underlying markets for agricultural commodities have a good correlation, which lowers basis risk and makes KBOFX Grains an effective hedging and trading instrument.

Energy Derivatives

Manage risk or increase exposure to important energy markets in Southeast Asia.

Electricity Market Review - Changes in market behavior are being driven by the switch to renewable generation. Electricity futures offer strong liquidity, decreased counterparty credit risk, and a distinctive trading opportunity that is unrelated to other financial markets.

Energy Derivatives Update - KBOFX is pleased to announce that it has been selected to take part in the subsequent stage of the development of the Japanese Carbon Exchange.

Employ the Power of Energy Trading - Energy market participants are managing more complicated and novel risks than ever before as the physical energy markets continue to grow and change.

Industrial Metals Derivatives  

  • Zinc
  • Aluminum
  • Lead Nickel
  • Copper

Precious Metals Derivatives  

  • Silver
  • Gold
  • Platinum
  • Palladium

Agriculture Derivatives  

  • Grains
    • Wheat
    • Corn
    • Soybean
    • Soybean Oil
    • Winter Wheat
    • Spring Wheat
  • Softs
    • Cotton
    • Sugar
    • Cocoa
    • Coffee
    • White Sugar
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