Malaysian Derivatives Exchange hits record Daily Trade Volume

South East Asia's new tiger economy has witnessed a spike in on Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Palm oil transactions. Total contracts traded on Bursa Malaysia Derivatives (BMD) reached a historical daily volume high of 77,703 contracts on Wednesday, 16 May 2012, surpassing the previous record of 74,014 contracts on 24 February 2011.

Palm oil is currently trading at 3,123 ringgit ($998) per tonne.

In addition, daily volume for crude palm oil futures (FCPO) contracts also charted a historical high of 63,019 contracts on Wednesday, surpassing the previous record of 48,741 contracts on 17 November 2011.

This is attributed to increased hedging activities resulting from the Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term and uncertainty seen in global financial and palm oil markets.

Bursa Malaysia has a partnership with CME, offering palm oil in US dollars.

Forexmagnates team will be writing a detailed report on FX in Malaysia, available in the next Q2 quarterly report.