The Crude Palm Oil Futures (FCPO) contract is one of the popular commodity futures traded on the Bursa Malaysia Derivatives Exchange. Facilitated through Bursa Malaysia Derivatives, FCPO serves as a global price benchmark for the crude palm oil market, offering insights into the commodity futures exchange since 1980. is traded.

This course provides insights into the uses of derivatives instruments, including risk management strategies such as hedging, speculative and arbitraging as well as the risks associated with derivatives trading. The first module of this course provides foundational concepts of financial derivatives. Participants will explore into various derivative instruments, such as forwards, futures, options, swaps, and contracts for difference (CFD), while learning to differentiate between exchange-traded and over-the-counter (OTC) derivatives. 

The second module of this course provides participants with a brief overview of FCPO contract, including the contract specifications that outline the key terms and conditions of how the FCPO contract.

Upon completion of this module, the participants will be able to: 

1.       define financial derivatives and their role in capital markets. 

2.       differentiate between over-the-counter (OTC) and exchange-traded derivatives. 

3.       identify types of derivatives instruments and uses of the instruments. 

4.       explain risks associated with derivatives trading. 

5.       describe the underlying instruments for the FCPO contract. 

6.       identify the key components and specifications of FCPO contracts.