Trading Products

As opposed to traditional fiat currencies, cryptocurrencies are a form of digital currency secured by cryptography, allowing individuals to transmit them in a virtual setting, anytime and anywhere. Cryptocurrencies are decentralized with no overarching regulatory body.

The Bitcoin, launched in 2009, was the first cryptocurrency. Other examples of cryptocurrencies are Ethereum, Litecoin, Ripple and etc. 

A blockchain is a database that functions as a decentralized virtual ledger, existing on a network of many computers. Data is arranged chronologically in blocks and each block’s metadata contains information linking it to the previous one. As such, once data has been stored, any modifications or deletions will be almost impossible. 

No, you do not need to set up a virtual wallet.

All cryptocurrency trades made are CFDs. Hence, you will not own the underlying physical cryptocurrency. Transactions are Over-the-counter (OTC) with Phillip Futures as the counterparty.

You will be able to go both long and short on Bitcoin and Ethereum. However, you will only be able to go long on Ripple and Litecoin. Sell side orders for Ripple and Litecoin are accepted for liquidation only. 

As the underlying cryptocurrencies are highly volatile and come with high-risk, Phillip Futures reserve the right to limit your ability to go long or short.

Cryptocurrencies are not legal tender and are not issued by any government nor backed by any asset or issuer. Cryptocurrencies are currently not subjected to any regulatory requirements or supervisory oversight by the Monetary Authority of Singapore (MAS). Hence, the safeguards afforded under MAS’ regulatory framework will not apply to consumers dealing with unregulated products, such as CFDs on Cryptocurrencies.

There are a number of risks involved in trading CFDs. Customers are advised to understand the nature and risks involved in margin and CFD trading before trading. The section below highlights the risks trading into CFDs on cryptocurrency. You may refer to our website here, detailing the risks in trading CFDs in general.

The price of our cryptocurrency CFDs are made available to us by the exchanges and liquidity providers who we trade with. Please note that Phillip Futures reserves the right, in its sole and absolute discretion to suspend trading in accordance to our Terms and Conditions and/or Customer Trading Agreement.

  • Lack of legislative protection by MAS

Cryptocurrencies are not legal tender and are not issued by any government nor backed by any asset or issuer. Cryptocurrencies are currently not subjected to any regulatory requirements or supervisory oversight by the Monetary Authority of Singapore (MAS). Hence, the safeguards afforded under MAS’ regulatory framework will not apply to consumers dealing with unregulated products, such as CFDs on Cryptocurrencies.

  • Extreme volatility

Cryptocurrencies have little or no intrinsic value, making them hard to value and extremely volatile. Being highly speculative, investing in cryptocurrencies entails high risks as prices are prone to sharp, sudden swings as a result of unanticipated events or changes in market sentiments primarily due to the lack of price transparency.

  • Liquidity risks and price slippages

Cryptocurrencies is a relatively new asset class and regulations, or a lack thereof, may have an impact on liquidity which in turn may result in unwanted price slippages. This is exacerbated in times of market volatility. Possible failure of cryptocurrency exchanges may also increase illiquidity.

  • Cybersecurity risks

Being a virtual, decentralized currency with no overarching regulatory body, cryptocurrency intermediaries are vulnerable to security breaches and market manipulations. Technical glitches on cryptocurrency intermediaries may happen as well. Such scenarios may cause disruption to trading and may cause substantial volatility in prices.

  • Hard forks

A hard fork changes the software, making it not backward compatible. Blocks running the new software will not be recognized and work with users running the older software, essentially splitting a single cryptocurrency into two.  Hard forks may cause substantial volatility in prices.

Phillip Futures will endeavour to inform you of any hard forks but it is ultimately your responsibility to be aware of them.

A fork is when software is modified or updated creating a divergence in the cryptocurrency’s blockchain. When software is updated to be backward compatible, it is called a soft fork. The updated software can still work and interact with older versions.

A hard fork on the other hand, fundamentally changes the software, making it not backward compatible. Blocks running the new software will not be recognized and work with users running the older software, essentially splitting a single cryptocurrency into two.

In the event of a hard fork of a cryptocurrency, we will generally follow the blockchain that has majority consensus of users and apply it to the basis for its price. Phillip Futures reserves the right to determine the cryptocurrency unit which has the majority consensus behind it.

If the hard fork results in a viable second cryptocurrency, we reserve the right to create an equivalent position on your account or make a cash adjustment to represent this value. This is done at our discretion and we will have no obligation to not do so.

If, within a reasonable time frame, the second cryptocurrency does not become tradable, we may void positions that was previously created at zero value on your account.

Hard forks may cause substantial volatility in prices and Phillip Futures reserves the right, in its sole and absolute discretion to suspend trading in accordance to our Terms and Conditions and/or Customer Trading Agreement.

  1. Within the Market Watch panel, mouse over your desired instrument and right-click

2. Select ‘Specification’to view more details of the instrument.

3) Calculate swap for 1 standard lot of LONG or SHORT position accordingly:
– LONG: Contract Size * Tick Size * Swap Long
– SHORT: Contract Size * Tick Size * Swap Short

4) The calculated swap value is in the instrument currency which will then be converted to USD.

Illustration:

Trader A establishes a 2 lot (Long) DBS contract at the price of S$21.07 with the specifications shown above and wants to find out the overnight swap rate that will be credited or debited.

Overnight Swap Rate Calculation:

Contract Size * Tick Size * Swap Long

= 2000 * 0.01 * (-0.16) * 21.07

-S$3.2 (Negative rate refers to debit/ Positive refers to credit)

As illustrated below, your net profit can increase when you trade CFD at zero commission. Trader A buys DBS Shares CFD with Phillip Futures (that has a spread included in the prices, but does not charge any commissions). Trader B also buys DBS shares CFD at the same time from a conventional CFD provider. Both sold it an hour later. The table below shows how Trader A was able to save $15 more by trading CFDs on zero commission with Phillip Futures. View the table below to learn more:
DBS Bid Price DBS Ask Price
Initial Price $25.00 $25.01
Final Price (One hour later) $26.00 $26.01
     
Trader A Trader B
Phillip Futures Zero commission CFD trading Conventional CFD with commissions
Buy Price $25.03 $25.01
Sell Price $25.98 $26.00
Shares Size 500.00 $500.00
Buy Commission $- $15.00
Sell Commission $- $15.00
Client Total Cost for the trade $25.00 $35.00
Client Net Profit $475.00 $460.00

Should you have any other query on zero commission CFD trading, you may contact the Client Service Desk at 6538 0500 or email to futures@phillip.com.sg.

CFDs allows you to speculate on the market movements of its underlying asset, without actually owning or taking physical delivery of the underlying asset. CFDs can also be used to hedge a portfolio’s value.

Benefits of trading CFDs include:

  • Flexibility to Short
  • Leverage
  • No Expiry Date of Spot CFD Contracts*
  • Transparent Pricing
  • Ease of Trading

*Please refer to our full contract specifications here.

There are a number of risks involved in trading CFDs. Customers are advised to understand the nature and risks involved in margin and CFD trading before trading.

Some of the risks include:

Leverage Risk

As CFDs are traded on margin, gains and losses can be amplified. A relatively small market movement will have a proportionately larger impact on your equity balance. If the market moves against your position or if margin levels are increased, you may be called upon to pay additional funds on short notice in order to maintain your position (also known as a margin call*).

Liquidity Risk and Risk of trading suspension

CFDs are traded on an over‐the‐counter (OTC) basis, which are subject to the availability of buy and sell prices and volume. CFD traders may experience insufficient depth of market liquidity and a wide bid-offer spread when the underlying markets are experiencing volatility, off peak trading or are closed. As such, Phillip Futures does not offer CFD trading when the exchange for the underlying market is closed. As slippages can be expected when liquidity is thin, working orders may not be filled at the exact specified price. Hence, it is important that customers seek clarification and gain understanding on the nature of contracts they intend to trade.

Additionally, there may be instances where CFD trading is temporarily suspended for reasons such as,

  • Severe market volatility in the underlying market where spreads are unfavourable
  • Underlying market hits the limit up, or limit down, bands and trading is suspended
  • Trading halts on the underlying, as announced by the associated exchange
  • Negative pricing experienced on the underlying asset

Even when trading is suspended on the MT5 trading platform, liquidation may still happen to customer’s CFD positions should the Equity Balance fall below the stipulated force‐selling margin level (also known as the Close Out Level).

Additional Risks

Due to pricing errors from market makers, CFDs are subjected to having a stale price traded off the current fair values. In a “price discrepancy” situation, Phillip Futures reserves the right to amend the executed price in CFD to the price deemed to be fair by liquidity providers.

Market volatility

Financial markets may fluctuate rapidly and the prices of our products will reflect this. Gapping is a risk that arises as a result of market volatility. Gapping occurs when the prices of our products suddenly shift from one price to another, as a consequence of market volatility. You may not be able to place an order or the platform may not be able to execute an order between the two price levels. This could result in stop orders being executed at unfavourable prices, either higher or lower than what you may have anticipated, depending on the direction of your trade. Customers can limit the risk and impact of market volatility by applying an order boundary (i.e. stop-limit orders).

Risk of Shares Recall

To enable the customer to take a short position in Shares CFD, there may be a need to borrow the shares of the underlying to conduct a short hedge. Lenders of the shares have the right to recall anytime. In the event of a recall, the shares may have to be returned at short notice and the CFD provider might no longer be able to maintain the short hedge. This may result in the Phillip Futures force closing your short Share CFD positions immediately or at a short notice. In addition, where working short Share CFD orders have been accepted, Phillip Futures will be entitled to disregard or cancel those orders without liability as a result of such action.

Regulatory changes prohibiting short selling and share borrowing in specific shares or in the entire underlying market may also result in the broker force closing customers’ short positions in CFD.

Counterparty Risk

CFD is an over-the-counter (OTC) leveraged product traded on an off-exchange basis. However, CFD trading is regulated by the Monetary Authority of Singapore (MAS), and is maintained in high integrity in accordance to MAS regulations. The firm with which customers conduct their transactions (which may be Phillip Futures, or another firm, if Phillip Futures acts as your broker to effect a transaction with such firm) may be acting as counterparty to the transaction.

Please refer to the Risk Disclosure Statement on our website and our Product Information Sheet for more details on the risks involved in trading CFDs.

Note: *Please note that margin call is not applicable to MT5. MT5 will auto liquidate the positions when equity balance falls below the stipulated force-selling margin level (also known as the Close-out Level)

CFDs are only available on Phillip MetaTrader 5 (MT5). Should you be an existing customer but do not have an MT5 account, you will need to open one to start trading CFDs.

You will also need to meet the Customer Knowledge Assessment (CKA) requirements and acknowledge the Risk Fact Sheet (RFS).

If you are an existing customer who is trading on MT5, but have not acknowledged the RFS, please click here.

To open an MT5 account, please click here. Alternatively, please contact your account manager, or contact the Client Service Desk at +65 65380500 or email to futures@phillip.com.sg.

You can trade indices, commodities and shares CFD on the Phillip MetaTrader 5.

Our CFD bid-ask prices are derived from prices of the reference instrument quoted in the underlying exchange, market or liquidity provider. Therefore, the CFD prices will only be available if the underlying exchange or market is open or if there is sufficient liquidity.

Spreads may vary across different CFDs and across trading hours.  

Please see the examples below to understand how profit and loss of a CFD contract is calculated.

Profit and Loss (Commodity)

Assuming that you bought 1 CFD (contract size of 100 barrels) of UKOIL at USD70 per barrel, and

A) Sold 1 UKOIL CFD at USD73 subsequently. You will gain a profit of USD300. This can be calculated as (USD73 – USD70) x 100 barrels = USD300;

B) Sold 1 UKOIL CFD at USD65 subsequently. You will incur a loss of USD500. This can be calculated as (USD65 – USD70) x 100 barrels = -USD500.

Profit and Loss (Indices)

Assuming that you sold 1 CFD (contract size of 1 index share) of US30 at USD25,000, and

A) Bought 1 US30 CFD at USD24,000 subsequently. You will gain a profit of USD1,000. This can be calculated as (USD25,000 – USD24,000) x 1 CFD = USD1,000;

B) Bought 1 US30 CFD at USD25,100. You will incur a loss of USD100. This can be calculated as (USD25,000 – USD25,100) x 1 CFD = -USD100.

Profit and Loss (Shares)

Assuming that you bought 1 CFD (contract size of 1000 shares) of DBS-SGX at SGD19.16, and

A) Sold 1 DBS-SGX CFD at SGD20.55 subsequently. You will gain a profit of SGD1390. This can be calculated as (SGD20.55 – SGD19.16) x 1000 shares = SGD1390;

B) Sold 1 DBS-SGX CFD at SGD18.17 subsequently. You will incur a loss of SGD990. This can be calculated as (SGD18.17 – SGD19.16) x 1000 shares = -SGD990;

C) In the worst case scenario, the price of DBS-SGX CFD falls to zero and the underlying stock is delisted. You will incur a loss of the full contract value of SGD19,160. This can be calculated as (SGD19.16 – SGD0) x 1000 shares = -SGD19,160. You may also be liable for additional charges, costs and fees incurred.

Please refer to our CFD Product Information Sheet for more details.

There are no commission charges for trading CFDs. However, at the end of each trading day, open positions in your account will be subjected to a charge called a ‘holding cost’. The holding cost can be positive or negative depending on the direction of your position and the applicable holding rate. The applicable holding rate differs across various underlying assets, and is a function of:

  • Financing costs (based on benchmark rates)
  • Interest Rate differentials
  • Cost of Carry adjustments
  • Dividends adjustments
  • Mark ups

Financing costs may differ across different instruments and are applied in the form of swap points and is set at a percentage of the marked to market value of the CFD.

Example of a Financing Cost

You go long 3 CFDs on the UK100 at 7310 and hold the position overnight. End of day mark-to-market (MTM) price is determined at 7340.

Overnight financing rate = [ MTM x (LIBOR + 2.5%) x Markup / 365 days ] x

Contract Size = [ 7340 x (0.0025 + 0.025) x 1.05 / 365 ] x 3 shares

= £1.74

Financing charges are presented as a component of the holding costs. The amount applicable is computed, along with dividend adjustments (if any), into the “swap” field of the MT5 trading platform.

For more information, please refer to our CFD Product Information Sheet here.

CFD margins will be based on a percentage of the previous day settlement price.

For more details, please refer to our full contract specifications here.

There will not be partial fills on your orders on MT5 for Spot CFDs. All limit orders for Spot CFDs are Fill or Kill (FoK).

In the event of severe market volatility, regulated central exchanges (for e.g. CME Group, SGX, etc.) may sometimes suspend trading on one side of the underlying market. These are called Limit Up or Limit Down, depending on the direction that the market has moved. These limits can also be referred to as Circuit Breakers. Both a Limit Up and a Limit Down are used to prevent certain assets reaching excessively high volatility levels.

As trading is suspended in the underlying market, CFD for the underlying instrument will also be suspended for trading on the MT5 trading platform.

Current Limit Up/Limit Down bands

The Limit Up and Limit Down thresholds are fixed by the exchange on which the assets trade, and are set for each asset. As such they are subject to change. For more information on a particular exchange’s thresholds and the latest threshold prices, you can look directly on the exchange’s website.

Dividend adjustments are to negate the impact of the drop in an index price due to dividend pay-outs from its underlying component stocks when they go ex-dividend. All things remain equal, the price of an index price will fall by the total value of the dividend amount issued by its component stocks.

If you are holding a long position to an ex-dividend date, you will be credited the dividend adjustment. If you are holding a short position to an ex-dividend date, you will be debited the dividend adjustment.

Dividend adjustments are presented as a component of the holding costs. The amount applicable is computed, along with financing charges, into the “swap” field of the MT5 trading platform.

Please note that dividend adjustments will be subjected to the relevant tax holding rates according to the country or region in which the index is listed.

Phillip Futures reserve the right to make revisions to the dividend adjustment post ex-dividend date.

Dividends

A dividend adjustment will apply to CFD on Equities for positions held to the ex-dividend date of its underlying shares. Where applicable, this adjustment will be calculated based on the weight of the stock in the index. For single shares, local taxation rules applicable are accounted for.

Dividend adjustments are presented as a component of the aforementioned holding costs. The amount applicable is computed, along with financing charges, into the “swap” field of the MT5 trading platform.

Example of Dividends inclusion in Holding Rate

For example, the underlying share of DBS Group Holdings announced a final dividend of 33 cents per share. On ex-dividend date, customers holding DBS-SGX share CFD will incur a holding rate presented as follows. A positive rate indicates that customers will receive, while a negative rate indicates that customers will pay.

Symbol Ccy Pricing Precision 1 day Financing Charges for Long Position 1 day Financing Charges for Short Position Dividends for Long Position Dividends for Short Position Swap Long in Points Swap Short in Points
DBS-SGX SGD 0.01 -0.0017 -0.0009 0.33 -0.33 32.83 -33.09

Assuming that you bought 1 CFD (contract size of 1000 shares) of DBS-SGX, and you held this position to the next day, which is the ex-dividend date. The holding cost for carrying this buy position will be calculated as:

  • Holding Value   = (Applicable swap rate in points x Pricing Precision) x Contract Size
= (32.83 x 0.01) x 1000 share      = SGD $ 328.3 (receive) Assuming that you sold 1 CFD (contract size of 1000 shares) of DBS-SGX, and you held this position to the next day, which is the ex-dividend date. The holding cost for carrying this sell position will be calculated as:
  • Holding Value    = (Applicable swap rate in points x Pricing Precision) x Contract Size

= (-33.09 x 0.01) x 1000 share     =  – SGD $ 330.9 (pay)

Dividend adjustments are denominated in the respective instrument’s settlement currencies.

Rights Issue

Trading of rights, when issued, is not facilitated. Customers, who are eligible for the rights, will not be able to sell or exercise the rights. Appropriate cash adjustments will apply when the underlying shares undergo rights issue, only for customers with long positions. To do this, rights received will automatically be subscribed on ex-right date, on condition that the rights are In-The-Money. Phillip Futures will at its sole and absolute discretion trade out the new positions from the rights subscription upon receiving the underlying shares when the market is open, or where liquidity in the market is permissible, whichever is deemed more appropriate by Phillip Futures in light of the circumstances.

The amount of cash adjustment applicable will be as follows:

  •  Cash adjustment amount = (Price where new positions sold – Subscription Price) x No. of shares held x US Dollar conversion rate

Customers who do not wish to be subjected to this discretionary action should liquidate their positions before ex-right date. Short positions will have to be liquidated one day before ex-right date. Customer shall indemnify Phillip Futures and Phillip Futures shall not be liable for any loss arising from or in connection with Phillip Futures’ or the Customer’s action or inaction in relation to such corporate action resolution.

Warrants

Trading of warrants, when issued, is not facilitated. Customers will not be able to sell or exercise the warrants. Appropriate cash adjustments will apply when the underlying shares undergo warrants issue (i.e. warrants rights issue or bonus warrants), only for customers with long positions. This process is similar to the rights issue procedure.

Customers who do not wish to be subjected to this discretionary action should liquidate their positions before ex-warrant date. Short positions will have to be liquidated one day before ex-warrant date. Customer shall indemnify Phillip Futures and Phillip Futures shall not be liable for any losses arising from or in connection with Phillip Futures’ or the Customer’s action or inaction in relation to such corporate action resolution.

Bonus Issue (Stock Dividend)

There will be no new CFD quantity allocated on exercise date, and no change to the original CFD position. Similar to rights issue, Phillip Futures will at its sole and absolute discretion trade out the new positions from the bonus issue upon receiving the underlying shares when the market is open, or where liquidity in the market is permissible, whichever is deemed more appropriate by Phillip Futures in light of the circumstances. Appropriate cash adjustments will apply where customers holding long positions will receive positive cash adjustments, while customers holding short positions will incur negative cash adjustments.

There is no requirement that short positions will have to be liquidated one day before exercise date. However, customers who do not wish to be subjected to this discretionary action should liquidate their positions before exercise date. Customer shall indemnify Phillip Futures and Phillip Futures shall not be liable for any losses arising from or in connection with Phillip Futures’ or the Customer’s action or inaction in relation to such corporate action resolution.

Stock Split (Reverse Stock Split)

Stock splits usually take place when the value of a company’s stock is getting too high. The share price will fall by a pre-determined percentage and holders will gain the same percentage of shares. To account for this, the current Share CFD position will be closed and re-booked at Zero P&L. All orders related to the CFD on the underlying Share will be cancelled. The settlement rate and associate margins required will also be adjusted for the stock split.

Example on Share CFD stock split

Assuming that you bought 1 CFD (contract size of 1000 shares) of DBS-SGX at $19.16. As an example, DBS Group Holdings announces a stock split of 2 for 1. You held this position to split day date. This means that, for every 1 share you hold, you will be issued 2.

The original buy position of 1 CFD on DBS-SGX at $19.16 will be closed at $19.16. The new position will be re-booked at Zero P&L, so you will now hold 2 CFD on DBS-SGX at the reduced price of $9.58. Note that the overall contract value remains the same.

Suspension

Whenever a stock suspends, Phillip Futures’ Risk committee will conduct an internal review and decide whether it is likely to trade again. If the news surrounding the company is negative, customers with open share CFD on the underlying stock will be notified that the margin requirement may be raised substantially after internal review. There will be no trading allowed for the share CFD during the suspension period. The margin requirement could remain at elevated levels until there is further news in the underlying market.

Delist

As soon as a company announces it is delisting, the stock status will first need to be reviewed by Phillip Futures’ Risk committee. For open share CFD positions on a stock that delists, the position will be closed at a level of zero. All orders related to the CFD on the underlying Share will be cancelled. Phillip Futures, on best effort basis, will seek returns to shareholders, a process which may take years. Any return found will be credited back to the customer’s account.

Other Corporate Actions not considered by Phillip Futures

Notwithstanding the foregoing, Phillip Futures reserves the right to close all open positions and working orders relating to CFDs of the underlying security before the ex-date for any corporate action not mentioned above.

In the event there is a combination of Corporate Actions (“CA-Cum All”), where it includes corporate actions other than the above mentioned, customers may not be able to enjoy the entitlement and may be required to close off all open positions before the ex-date.

Please refer to our CFD Product Information Sheet for more details on how corporate actions are handled.

Force‐liquidation Margin (FM)

Phillip Futures reserves the right to liquidate your CFD positions without prior notice when the Equity Balance falls below the stipulated force‐selling margin level (also known as the Close-out Level*). For Phillip MT5 system, you will be receiving a notification should your account be in margin deficit. You are required to reduce your position(s) or top up your funds immediately to bring your margin level back above initial margin level requirements. It is your responsibility to monitor the equity balance in your account to avoid the risk of your account meeting the Close-out Level which will result in the automatic liquidation of your position(s) at market prices.

*Close-out level on MT5 for Accredited Investors is 50%, and Non-Accredited Investor at 20%.

For more information, please refer to our CFD Product Information Sheet here.

You can reach our Technical Support Desk at (65) 6531 1788.

It is important for customers to know the inherent risks and characteristics of Bitcoin Futures. As with any investment product, customers are responsible for their own risk management.

  1. Bitcoin is a relatively new product and is known to be volatile. As much as 30% of price movement has been recorded within a trading day.
  2. Bitcoin cash trades 24 hours including weekends. However, its Futures contracts listed in CME and ICE SG have specific trading hours. This may result in wide price gap that could potentially be as high as 25% or beyond.
  3. Liquidity is also an inherent risk for Bitcoin Futures. Near month Bid/Offer spreads had been recorded to be as wide as 120 points, and up to 1000 points for the far month expiry. This may transcend into very high cost, especially for customers trading the CME Bitcoin Futures contract, which is 5 times bigger than the ICE SG contract.
  4. Please note that there will be no call in trading support for Bitcoin contracts. Customers would need to manage the possible risks and choose to trade during active hours.

Do note that the Initial margin (IM), which is based on CME or ICE SG daily settlement price, may experience huge fluctuations daily.

Futures contracts are traded on an intra-day “First In, First Out” basis. This means that for an intra-day trade, a customer’s first position bought or sold will be the first to be liquidated.

Example: Glenn bought 2 contracts of December MSCI Singapore Index on 2 different days.

Day 1 purchase price: 306.5
Day 2 purchase price: 306.0

Before the end of the main trading session of Day 2, he proceeds to close one contract at the price of 306.3. In this scenario, Glenn will make a profit of 3 ticks (0.3) as the contract bought on Day 2 is the first contract to be closed out instead of the contract bought on Day 1.

Please refer to the relevant exchange website and search for the particular contract specifications or you can refer to the margin list from Client Portal under Trading Information.

Commodities trading involves undertaking an agreement to buy or sell a set amount of a commodity at a predetermined price and date. Buyers use these to avoid the risks associated with the price fluctuations of the products or raw materials while sellers try to lock in a price for their products.

For more information, please visit our Introduction to Futures.

We offer commodity products in three main categories:

  1. Energy Futures contracts: Crude Oil, Brent Crude Mini Crude Oil, Natural Gas, Mini Natural Gas, Kerosene, Gasoline and Crude Palm Oil.
  2. Metal Futures contracts: Gold, Mini-sized Gold, Silver, Mini-sized Silver, Copper, Palladium, and Platinum.
  3. Agricultural Futures contracts: Corn, Soybeans, Soybean Oil, Soybean Meal, Oats, Wheat, Cotton, Orange Juice, Cocoa, Coffee, Sugar and Red Hard Winter Wheat.

The Foreign Exchange market, also referred to as the “Forex” or “FX” market is the largest financial market in the world with a daily average turnover of approximately US$5.3 trillion. Foreign Exchange is the simultaneous buying of one currency and selling of another. For more information, please visit our Introduction to Forex.

Spot Forex/Bullion contracts are closed out on a First In, First Out (FIFO) basis, as illustrated in the example below:

The investor bought 100K of EURUSD at 1.3320 on Monday. On Tuesday, he bought 100K EURUSD at 1.3310. Within the same day on Tuesday, he sold 100K of EURUSD at 1.3312. This trade of selling 100K EURUSD at 1.3312 will be squared off with Monday’s long EURUSD at 1.3320 based on FIFO basis.

A Spot Forex contract involves the trading of 2 currencies for settlement within 2 business days (known as T+2). However, if the client has an open position that is held past the New York market close at 5:00pm (New York Time*). Phillip Futures will do a rollover for clients automatically and a swap is charged/earned in the process. (For more information on swap, please visit our Forex & NDFs page) Thus the client will not need to worry about monitoring the contracts expiry dates. Unlike Futures contracts or equities, clients with Spot Forex open positions can hold their positions for as long as they want, provided they have sufficient margins in their accounts to finance the position(s).

The Foreign Exchange Our Spot Forex Dealing Desk is open for 24-hour trading daily, from Sundays at 5:00pm to Fridays at 5:00pm (New York Time*). Prices on our trading platforms are available and orders are matched within the abovementioned trading hours.

Any order submission, withdrawal or amendment outside trading hours will not be accepted. Good-Till-Cancel (GTC) orders that remain active over the weekend are subject to prevailing market price when trading resumes. All active orders will get done in accordance with the prices from our liquidity providers. Any prices made available outside the trading hours will not be matched.

Trading options allows an investor to gain leverage in a contract without committing to a trade. Furthermore, risk is limited to the option premium for the buyer of an option. (Writers of options face unlimited downside risk.) In addition, trading options allows investors to protect their positions against adverse price fluctuations when it is not desirable to alter the underlying position.

Bullion Trading is available from Sundays at 6:00pm to Fridays at 5:00pm (New York Time). Prices on our trading platforms are available and orders are matched within the abovementioned trading hours.

Special opening hours may apply on US and UK national holidays to reflect the trading hours of the underlying futures markets.

Any order submission, withdrawal or amendment outside trading hours will not be accepted. Good-Till-Cancel (GTC) orders that remain active over the weekend are subject to prevailing market price when trading resumes. All active orders will get done in accordance with the prices from our liquidity providers. Any prices made available outside the trading hours will not be matched.

In Forex trading, there is another element known as swap, or commonly known as the interest differential between 2 currencies.

If a client is buying a currency of higher interest rate than that of the one he is selling, he will gain swap points (or earn interest), and vice versa.

For more details of the swap points for each currency pair, please contact our Forex Desk at (65) 6536 7200 or Marketing Desk at (65) 6538 0500.

The standard unit or regular size for Forex transaction at Phillip Futures is 100,000 of the base currency.

New traders or those with lower risk appetites can now trade the mini or micro sized contract* which represents 10,000 and 1,000 of the base currency respectively.

*Micro contracts are available in FX365, FXTrader and Phillip Metatrader 5.

With effect from 1 September 2021, an administrative fee of USD20 will apply to each Physical Delivery (PD) instruction for each Forex contract.

Should you have any query, please approach your account manager. Alternatively, please call/WhatsApp the Client Service Desk at (65) 6538 0500 or email futures@phillip.com.sg.

Phillip Futures has the following Gold/ Silver products for trading:

1. Loco London Gold/Silver
2. Loco London Mini-Gold and Mini-Silver
3. Gold Crosses with EUR and JPY 
4. Mini Gold Cross in SGD (100g and 10oz)
5. Gold Direct & Silver Direct Investment (GDI & SDI)
6. Gold and Silver Futures and Options (COMEX, CBOT, TOCOM)

In Spot Gold/Silver trading, there is an element known as swap, or commonly known as rollover charge. Bullion swaps are debited/credited when a bullion position is held to the next day.

Spot Bullion trade involves borrowing a funding currency (e.g. USD) to pay for Gold/Silver, or borrowing Gold/Silver to pay for the funding currency. The differential between the Bullion lease rate and the funding currency interest rate that you trade in would, therefore, determine the bullion swap.

For more details of the swap points for bullion trading, please contact our Forex/Bullion Desk at (65) 6536 7200 or Marketing Desk at (65) 6538 0500.

Trading options gives the buyer the right but not the obligation to either buy or sell a specific asset at a predetermined price on a future date.

It differs from futures trading as, the options’ purchaser has no obligation to either buy or sell for the exercise price and will do so only if it is profitable.

Options are flexible instruments because they allow you to tailor the exact exposure and risk you wish to have for an anticipated move in the options price.

Writing an option provides one with an additional source of income arising from the premium one receives from the buyer of the option. The premium also serves as a cushion against the risk exposure one would incur.

For example, if you write a call option in anticipation of a decline in the price of an underlying, you will reduce your potential capital loss by the amount of premium you receive. However, if you expect the price of a particular underlying to rise, you may wish to write a put option and earn the premium as the put option holder will not exercise his right.

Options is both an exchange traded product and an OTC product.

Contracts traded on the Singapore Exchange Ltd (SGX) include the Eurodollar, Euroyen TIBOR, Euroyen LIBOR, 10-Year Japanese Government Bond, Mini 10-Year Japanese Government Bond, Nikkei 225 Index, Nikkei 300 Index and MSCI Taiwan Index. More information can be found on the SGX website.

All Options buyers are required to pay the premium of the Option. In addition, there is a margin requirement applicable for POEMS Professional users who wish to buy options

Day 1: The margin requirement is determined by the premium paid multiplied by the contract size
Day 2 onwards: The daily margin requirement is determined by the Start of Day price multiplied by the contract size

As the seller of the Options, mostly a full margin equivalent to that of the underlying Futures contract is required for the margin. This is calculated and computed by the SGX SPAN system for Options margining.

No, because the value of the Option will depreciate with time and is worth nothing once expired.

The exercise style of an option does not prevent an investor from closing the position by engaging in a closing transaction on an exchange up to and including the last trading day for the contract. A long (purchased) option contract can be closed by one of two methods: entering into a closing sale at an options exchange, or by exercising the contract. A European exercise style option can only be exercised at expiration so the only way to close your position prior to expiration is to execute a closing trade.

Index options can have different exercise styles and trading hours. Option holders would want to be certain that they know the difference between closing an open option position by exercising the contract, and closing the position via a trade on an exchange. Even the last trading day for expiring options can vary. The contract specifications of these index products contain important trading information regarding these options.

Options will not move as much as their underlying unless they are in-the-money and/or very close to expiration. The amount an option can be expected to move given a 1-point move in the underlying futures contract is called delta. A delta of 0.5, for example, means that an option can be expected to move about fifty cents for every $1 move in the underlying contract. Delta will change with time to expiration as the option moves more in- or out-of-the-money, and will also be affected by the volatility of the underlying.

As soon as you tell your broker you would like to exercise your right to buy the futures contract you are deemed to be a contract owner. Because of the irrevocable nature of the call exercise, you will be buying the futures contract at the strike price, and you can sell those contracts immediately after giving instructions to exercise.

For options that expire on the same day as the underlying futures, at-the-money or out-of-the-money options are not allowed to be exercised on expiration day. There is no incentive for the long option holder to exercise such options since the options expire together with the underlying futures. Nevertheless, all in-the-money options will automatically be exercised on expiration day. For options that do not expire together with the underlying futures, request to exercise such options should they be at-the-money or out-of-the-money will be allowed.

Yes. Options can be sold without you owning them but this is not known as short selling. When you buy an option, you pay out money to someone and obtain the right to buy (or sell, in the case of put options) the underlying at the strike price. The seller of the option sells you this right to buy (or sell) the underlying at the strike price and in return for a premium. The seller therefore takes money in, but also takes on the obligations that go along with the contract.

Yes. You can cancel your obligation as a holder or writer of an option by effecting a closing transaction before the expiration date.

Approximately 55% of options are closed out before expiry, around 15% are exercised and around 30% expire worthless.

Non-deliverable forwards (NDF) are cash-settled and usually short-term forward contract. The notional amount is never exchanged. Two parties agree to take opposite sides of a transaction for a set amount of money at a contracted rate. The profit or loss is calculated on the notional amount of the agreement by taking the difference between the agreed upon rate and the spot rate at the time of settlement.

NDFs are used to hedge or speculate against currencies where government regulations restrict foreign access to local currency or when there is the need to compensate for risk without a physical exchange of funds.

Spot ForexNDF
1. Actual exchange of principal funds1. No actual exchange of principal funds
2. Deliverable market offshore2. Not deliverable market offshore
3. Value date is usually T+23. Value date as specified in contract
4. Profits and Losses are in term currency4. Profits and Losses are in US Dollars
5. Lower initial margins required5. Higher initial margins required

Currently, we only accept call-in execution for a minimum contract size of USD250,000.

All NDFs have a fixing date and a value (settlement) date. The fixing date is the date which the difference between the prevailing spot market rate and the agreed-upon rate is calculated. The value (settlement) date is the date where the difference is paid or received in US Dollars. The fixing date is usually 2 business days before the value date.

For long positions, deduct your NDF agreed exchange rate from the NDF fixing rate at expiry, then multiply the figure by your notional amount, and divide it by the NDF fixing rate. The result will be your profit or loss in US Dollars.

For short positions, deduct the fixing rate from your NDF agreed exchange rate, then multiply the figure by your notional amount, and divide it by the NDF fixing rate. The result will be your profit or loss in US Dollars. Example: You bought 1 million USDINR NDF at 60.20, fixing date 08 Oct, value date 10 Oct. On 08 Oct, the USDINR NDF rate is fixed at 60.80. You made a profit of ((60.80-60.20) x 1,000,000)/60.80 = USD 9868.42. You will receive this amount on the value date 10 Oct.

Trading NDF is risky because spreads are usually wider during non-official trading hours. It is not as liquid as spot FX as market depth is thinner, making it more volatile. Margins will also be locked until the value date.

No, there are no deliveries for NDF positions.

No, the statement shows balances in the restricted reference currency as an indication of profits or losses in the reference currency based on the settlement rate. These are for indication and does not imply that you actually have balances in the restricted currency. Positive balances in the reference currency will be converted to US Dollars only upon fixing and that can be withdrawn after the value date.

No, you cannot use the profits made in your NDF positions before the fixing date as margins for other leverage trades. After the fixing date when the contract is settled and the profits are converted to US Dollars, the profits can then be used as margin for trading other products.

You can withdraw your profits made in your NDF position only after the value date, even if your NDF position is closed before the fixing date. Any profits realised before the fixing date can only be withdrawn after the value date.

You can close an existing NDF position before the fixing date by entering a trade of the exact contract on the opposite side.

For all open NDF positions held until expiry, the contracts will be automatically closed out at the fixing rate during fixing.

The standard tenors for NDF contracts are quoted in weeks and months. For example, 1 week, 2 weeks, 1 month, 6 months.  For clients who wish to trade on odd dates, they may call in to our dealing desk and specify their desired date.

Phillip Futures Pte Ltd will amend the off market price to fair market price using reference price obtained from Bloomberg or equivalent and price source from Liquidity Providers. Cancellation of off market trades is subjected to the approval of Phillip Futures Pte Ltd.

Standard tenor of 1 week, 2 week, 3 week and 1 month NDF price published in Bloomberg or equivalent will be used as a guide to determine fair value. Concurrently, Phillip Futures will try its best efforts to check with other Liquidity Providers for fair value prices at the affected time.

Client needs to be 21 years old and above, and is required to pass CKA E-learning.

Yes, all other leveraged products are available for you to trade on, as long as you have the sufficient required margins to initiate the trade. With the trading of other leveraged products, your account will be subject to Margin call and Low equity.

GDI & SDI are almost no leverage products which cater to long-term investors, whereas the Spot Mini Gold/Silver are leveraged products which cater to shorter-term speculators.

Investments in GDI/SDI can be done electronically via POEMS.

Yes. Please contact the Client Service Desk at (65) 6538 0500 or email to futures@phillip.com.sg for more details.

Commission and swap are not applicable for Gold & Silver Direct. However, the admin fee of 1% p.a on the daily settlement price will apply, and it will be charged on a daily basis.

Gold and Silver Direct Investment are cash settled products. However, Phillip Futures offers 1 oz Gold bar and coins for sale. For more information on Gold/Silver trading/investment, please give us a call at (65) 6538 0500 or send us an email at futures@phillip.com.sg.

1. 2017 Canadian Maple Leaf 1 oz Gold Coin with 99.99% purity level
2. Royal Canadian Mint 1 oz Gold Bar with 99.99% purity level

Note: types of gold available for purchase are subject to change

No Type of gold Premium Charge
 1 2017 Canadian Maple  Leaf US$40/oz
 2 Royal Canadian Mint Gold Bar US$35/oz

Note: premium charged is subject to change

At the moment, Phillip Futures will not be buying back the 1 Oz gold coin/bar issued.

No, both Canada Maple Leaf and Royal Canadian Mint are qualified as Investment Precious Metals (IPMs), therefore they are exempted from GST.

You may contact us at 6538 0500 or email futures@phillip.com.sg so that we can facilitate your request for purchasing a 1 Oz gold coin/bar. Collection of 1 oz gold coin/bar is at Phillip Futures, located at 250 North Bridge Road, #07-01, Raffles City Tower, Singapore 179101.

Previously, Spot Forex/Bullion contracts are only closed out on a First In, First Out (FIFO) basis, as illustrated in the example below: 

The investor bought 100K of EURUSD at 1.3320 on Monday. On Tuesday, he bought 100K EURUSD at 1.3310. 

Within the same day on Tuesday, he sold 100K of EURUSD at 1.3312. 

This trade of selling 100K EURUSD at 1.3312 will be squared off with Monday’s long EURUSD at 1.3320 based on FIFO basis. With the introduction of our Phillip MT5 platform, there is an option for hedge mode, which means an investor can buy and sell the same currency pair without squaring off the positions. So he/she is effectively holding onto 2 open positions, and can choose to close of each position individually. The same applies to multiple position held in one direction (Buy or Sell)

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Should you have any query, you may contact us at (65) 6538 0500 or
email us at futures@phillip.com.sg