Call-In (Dealing Desk)
Q1. What is the procedure to call-in and place trade?
Q2. How do I know which products are suitable for me?
Q3. How do I get confirmation if I place an order with the Dealer and it’s done?
Q4. Can I call-up the dealer to check on my Net Position?
Margin Call
Q1. What is margin?
Q2. How would I know if I have a margin call?
Q3. What should I do if I have a margin call?
Q4. How much time do I have to top-up for my margin call?
Q5. What will happen if I do nothing to my margin call on second day?
Q6.
Can I trade when I have an outstanding margin call?
Q7. How do I top-up my margin call?
First Trading Day / Last Notice Day
Q1. What does ‘First Notice Day (FND) and Last Trading Day (LTD)’ refer to?Q2. Why must I liquidate/rollover my position towards the FND and LTD?
Q3. If I do not want to take physical delivery, when do I have to liquidate my positions?
Q4. How will I know whether my futures contract is approaching FND and LTD?
Q5. What will happen if I do not liquidate my open positions two business days before FND/LTD?
Error Trade FAQs
Q1. There is a trade that shown in my account but its not done by me. How can I verify?
Q2. I think the Dealer place an order for me with the wrong execution price, how can I verify?
Type of Orders (Definition)
Q1. Limit Order
Q2. Stop Order
Q3. Stop on Bid Order
Q4. Stop on Offer Order
Q5. OCO Order (One Cancel Other)
Q6. GTC Order (Good till Cancel)
Q7. Market on Close Order
Call-In (Dealing Desk)
Q1. What is the procedure to call-in and place trade?
State your order clearly to the Dealer, paying attention to the contract month (Futures trading), quantity, and order buy or sell.
Q2. How do I know which products are suitable for me?
To discuss the advantages/disadvantages of the products, you may sign up our education services as below:
- Free Seminar and Events
- One to One Coaching
- Personalized Coaching Service
For more information, you may call our Marketing Desk at (65) 6538 0500.
Q3. How do I get confirmation if I place an order with the Dealer and it’s done?
You may call to the Dealing Desk at (65) 6535 1155 (Futures) or (65) 6536 7200 (SPOT FOREX/Gold) to confirm the trades done.
Q4. Can I call-up the dealer to check on my Net Position?
Yes, you may call to the Dealing Desk at (65) 6535 1155 (Futures) or (65) 6536 7200 (SPOT FOREX/Gold) to check your Net position.
Margin Call
Phillip Futures’ Margin Requirement and Margin Call Policy
It is the client’s sole responsibility and obligation to be aware of, and keep abreast with the margin requirements for their trades, and also to ensure that the funds in their account meet the required margin at all times.
Clients are to refer to the current margins of the respective contracts for the latest margin requirements. Please be advised that margins are subjected to change without further notice.
A “Margin Call” is a situation that arises when the Equity Balance in the client's account falls below the margin required for the established open positions.
Generally, a notification regarding the occurrence of “Margin Call” will be made to the client via phone, SMS or email, and will request immediate action (i.e. to top up funds or to liquidate sufficient positions) from the clients.
Under the terms of our Customer Trading Agreement, we have the right (but not the obligation) to liquidate the open positions in clients’ account that are under “Margin Call”. We are not required to notify clients in advance of any liquidation.Therefore, depending on market conditions and the extent of the margin requirements, we may liquidate sufficient clients’ positions at market prices without prior notice to or consent from the client.
The possibility exists, due to extreme market conditions, that clients can sustain a total loss of initial margin funds and are required to deposit additional funds to maintain their trade positions. If client’s account is under-margined, or if we become insecure at any time with respect to the adequacy of the collateral on deposit in client’s account, Phillip Futures reserves the right (but not the obligation), at any time and without prior notice to or consent from the client, to cancel any or all outstanding orders, offset any or all open positions in the client’s account and to convert all foreign currencies exposures to SGD [or any other single currency]. Clients are liable for any deficiency or debit balance as a result.
Clients are not entitled to choose which position(s) in their account to be liquidated to satisfy Margin Calls requirements. Phillip Futures has the absolute discretion to decide which position(s) to close off in order to protect its interests.
Phillip Futures can increase margin requirements at any time and is not required to provide clients with advanced written notice.These changes in firm policy often take effect immediately and may result in the issuance of a Margin Call. Client’s failure to satisfy the Margin Call may cause Phillip Futures to liquidate the holdings in client’s account.
Clients are not entitled to an extension of time on a margin call.
We suggest that clients should take measures to minimise the possibility of getting forced liquidations to your account’s open positions, such as:
Q1. What is margin?
Margin is the equivalent of a good faith’s deposit placed by the parties to a contract. It’s a small percentage, usually between 2% and 15%, of the value of the contract that is deposited with a Broker to show the commitment to the contract entered into by the customer. The amounts of the minimum Margin deposits are determined by the respective Exchanges and are subjected to changes due to price movement and/or market volatility. Phillip Futures may set a higher margin requirement.
Trading with Margin creates a “leverage effect” that allows an investor to use a small amount of money to make an investment of greater value so that a small price change can result in relatively larger profits or losses.
There are usually 2 margin levels client should take note, namely the Initial Margin and Maintenance or Call Margin.
Initial Margin refers to the amount of funds required to be deposited before initiating a trade.
Maintenance or Call Margin refers to the minimum amount the account has to maintain in order to hold on to the position. If the account balance falls below this level, client will be deemed to be on Margin Call.
Q2. How would I know if I have a margin call?
When your Equity Balance (ledger Balance +/- unrealized Profit/Losses) falls below the maintenance margin level, you are considered to be on Margin Call.
Once the equity balance falls below the maintenance margin level, notification will be issued to clients to top up funds so as to return the equity balance to the Initial Margin level. The margin call notification will usually be made by a telephone call. If you are not contactable, we will send the notification via SMS and/or email to your registered mobile phone number and/or email address. Please ensure that your contact details are updated at all time to avoid any miscommunication.
While we will try our best to notify a customer of margin calls, in the event that a customer failed to be notified of any margin call, Phillip Futures reserves the right, without prior notice to customers, to liquidate any position(s) on the occurrence of either the total equity balance faces full depletion, or the Margin Call is not met by T+2, whichever occurs first.
Q3. What should I do if I have a margin call?
To meet the call, you can either top-up your account back to the initial margin level or liquidate sufficient open positions to bring the initial margin level below the Equity Balance of your account.
Q4. How much time do I have to top-up for my margin call?
Under normal market conditions, you may have up to Trade date + 2 (T+2) business days to top-up your account upon the occurrence of Margin Call. It will be considered as T+1 business day when you receive the first margin call notification. Therefore you may actually have up to one more day to respond to us.
In extremely adverse market conditions, Phillip Futures might require a customer to top-up his account within a reasonable time (2 hours may be deemed as reasonable time).
Not withstanding the above, Phillip Futures reserves the right, without prior notice to customers, to liquidate any position(s) on the occurrence of either the total equity balance faces full depletion, or the Margin Call is not met by T+2 (or such time as stipulated by Phillip Futures from time to time), whichever occurs first.
Q5. What will happen if I do nothing to my margin call on second day?
If you did not top up your account by the due date, Phillip Futures have the absolute discretion and without further notice to you, liquidate the position(s) to bring your equity balance above your Initial Margin level.
Q6. Can I trade when I have an outstanding margin call?
When you have an outstanding margin call, you may only place risk reducing trades. However, You may place risk increasing trades upon successfully topping up of your account with sufficient funds to cancel off the outstanding margin call and for the initial margin of the new trades, before the respective cut-off timing on the first day of margin call (T+1). Phillip Futures reserves the right not to accept any orders resulting in risk increasing trades.
Q7. How do I top-up my margin call?
Please refer to Accounts FAQ under Top-Up Section.
First Notice Day (FND) and Last Trading Day (LTD)
Q1. What does ‘First Notice Day (FND) and Last Trading Day (LTD)’ refer to?
First Notice Day refers to the first date on which notices of intentions to deliver actual commodities against futures are authorized. This date varies by commodity and exchange. If you are holding a long futures position, you will need to liquidate or roll over the long position prior to the first notice date.
Last Trading Day refers to the final day during which trading may take place in a particular futures delivery month. This is again according to the rules set by the exchange. Futures contracts that remain outstanding at the end of the last trading day must be settled by delivery. If you are holding a short futures position, you will need to liquidate/rollover the short position by the last trade date to avoid physical delivery.
Q2. Why must I liquidate/rollover my position towards the First Notice Day and Last Trading Day?
a) To avoid physical delivery
As explained above, the vast majority of physical deliverable futures contracts are traded by hedgers or speculators with no interest in taking or delivering the underlying asset. Most traders simply close out the positions by purchasing offsetting contracts to avoid the risk of physical delivery.
b) To avoid thinning liquidity
Towards the last day of trading, physically-settled contracts will typically experience thin liquidity. This is due to the fact that traders who do not intend to convert their futures contracts to physical goods would have already exited the market either by rolling over their positions to the next delivery month or simply closing out their positions to avoid physical delivery. Naturally, such actions by traders who hold larger positions would have more significant impact on price movements and markets are therefore subject to more intense volatility as the futures contracts head towards expiration.
Q3. If I do not want to take physical delivery, when do I have to liquidate my positions?
We encourage you to liquidate your positions for your physical deliverable contract two days prior to FND for long positions and two days prior to LTD for short positions. This is to mitigate the risk of thin liquidity. Phillip Futures will assist to liquidate all open positions that are not squared two days prior to the FND/LTD.
Q4. How will I know whether my futures contract is approaching First Notice Day and Last Trading Day?
It is necessary for you to watch your positions closely so that you are aware of the FND/LTD of the futures contract(s) that you are holding. In addition to this, Phillip Futures will remind you through emails.
We will send you the first reminder email five business days prior to the FND/LTD, and the second reminder email two business days prior to the FND/LTD.
In the reminder emails, you will be reminded to liquidate or roll over your positions before the ‘15 minutes period’ prior to market closing time on the FND/LTD.
You will also be clearly informed about the consequences of failing to do so i.e. Phillip Futures will attempt to liquidate your positions within the last ’15 minutes period’ prior to market closing time in order to avoid physical delivery.
For more information on FND/LTD, you may also refer to our electronic calendar on the Phillip Futures website at www.phillipfutures.com.sg.
Q5. What will happen if I do not liquidate my open positions two business days before FND/LTD?
Liquidation by PFPL will take place 30 minutes before market closes for 5 COMEX metal products.
Liquidation by PFPL will take place 15 minutes before market closes for all other products.
You do not need to liquidate your position(s) within the last ‘15 minutes period’ prior to market closing to avoid duplicate liquidation which will result in the creation of new position(s).
Please contact the Futures Dealing Desk at (65)6535 1155 or Commodities Dealing Desk at (65)6334 3183 if you require any further clarifications on liquidating your open position to avoid physical delivery.
Error Trade
Q1. There is a trade that shown in my account but its not done by me. How I can verify?
Please call to the Dealing Desk at (65) 6535 1155 (Futures) or (65) 6536 7200 (SPOT FOREX/Gold) to check your trade done with the Dealers.
Q2. I think the Dealer place an order for me with the wrong execution price, how can I verify?
Please call to the Dealing Desk at (65) 6535 1155 (Futures) or (65) 6536 7200 (SPOT FOREX/Gold) and verify with them about the order price.
Type of Orders (Definition)
Q1. Limit Order
An order places to Buy/Sell at a price upon submitted or better. A Limit order sets the price at which the trader is willing to buy or sell at. Accordingly, whereas a price of Buy Limit order should be lower than the market price, a price of Sell Limit order should be higher than the market price.
Q2. Stop Order
A Stop order is a risk management order type which trader use to limit their losses or protecting their existing position. It can be use to initial new position. A Sell Stop usually place below current market price and Buy Stop will be placed above current market price. In addition to risk management purpose, some people use Stop order to trade on the market break.
Q3. Stop on Bid Order (SOB)
Example:
| BID | ASK |
|---|---|
| 1.3880 | 1.3885 |
- Buy Stop on Bid
When a Trader submits an order to Buy Stop on Bid at 13880
The order to Buy Stop on Bid at 1.3880 will be initiated when the market price reaches 1.3880 on the Bid side. It will be then executed at the next best available OFFER price.
- Sell Stop on Bid
When a Trader submits an order to Sell Stop on Bid at 1.3880
The order to Sell Stop on Bid at 1.3880 will be initiated when the market price reaches 1.3880 on the Bid side. It will be then executed at the next best available BID price.
Q4. Stop on Offer Order (Ask) (SOO)
Example:
| BID | ASK |
|---|---|
| 1.3875 | 1.3880 |
- Buy Stop on Offer
When a Trader submits an order to Buy Stop on Offer at 13880
The order to Buy Stop on Offer (Ask) at 1.3880 will be initiated when the market price reaches 1.3880 on the Offer (Ask) side. It will be then executed at the next best available OFFER price.
- Sell Stop on Offer
When a Trader submits an order to Sell Stop on Offer at 1.3880
The order to Sell Stop on Offer (Ask) at 1.3880 will be initiated when the market price reaches 1.3880 on the Offer (Ask) side. It will be then executed at the next best available BID price.
Q5. OCO Order (One Cancel Other)
An order stipulating that if one part of the order is executed, the other part is automatically cancelled:OCO Limit Order being executed, OCO Stop on Offer/Bid will be cancelled.
OCO Stop on Offer/Bid being executed, OCO Limit will be cancelled.
Q6. GTC Order (Good-till-cancel)
A Good-till-cancel (GTC) order will remain active until the Trader decides cancel it. NOTE: Clients will not be able to withdraw or amend GTC order submitted through POEMS from Saturday 5 am to Monday 7 am.
Orders can only be withdrawn or amended through call-in to the Dealing Desk at (65) 6535 1155 (Futures) or (65) 6536 7200 (SPOT FOREX/Gold).
Q7. Market on Close Order
A Market on Close order is market order that done before the market close. The order will be executed on the nearest price to closing market price.
