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Bursa Malaysia Launches Palm Oil Option (OCPO)

Options on Crude Palm Oil Futures (OCPO)

Bursa Malaysia Derivatives officially launches today option trading on crude palm oil, giving traders more hedging and trading instruments.

The option on crude palm oil futures or OCPO in short, is a “derivative on derivative” financial instrument. The crude palm oil futures (FCPO) which is the global price benchmark for the edible oils industry underlies the OCPO. Like the OKLI, the OCPO is a European style option which can be exercised only at the expiration date and cash settled.

Option is a highly versatile instrument that provides flexibility for various trading strategies as well as offers greater opportunities even during non-volatile market conditions. If you trade futures and physical commodities markets, then the OCPO is a good choice to complement your trading position in both markets.

Click here to see the OCPO contract specification

If you’re currently trading FCPO, would you consider trading OCPO in the next 3 months? Tell us your thoughts in the comment box below.

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