Alternative investment for customers
Potential for capital gains when the selling price is higher than the purchase price
Hedging strategy on the certain market condition
Wide range access to ATM in Indonesia, Malaysia, and Singapore
Transactions can be done at any time
I. Product Description
Future Contract is a contract traded on a futures exchange to buy or sell a specific number of financial instruments in the future, at a certain price agreed between the parties that is legally binding.
Futures contract transaction instrument refers to US Treasury Futures. 1 US Treasury Futures contract has a value (size) of USD 100,000 / USD 200,000 (according to market conditions)
US Treasury Futures are futures contracts based on US Treasury instruments with maturities ranging from 2 years to 30 years with quoted 32-nds (not in decimal format). The 32-nds quote format means, for example, Price 101-27 has the same meaning as the price of 101.84375 (= 27/32). 1% movement of the US Treasury Futures contract (USD 100K) has a value of USD 1K.
Customer must provide funds as the margin required by the bank in an amount determined from time to time consisting of:
• Initial Margin = 7% of settlement transaction nominal*
• Reserve Margin = 5% of settlement transaction nominal *
*Settlement transaction: Price x Total Contract*Size
In a futures contract transaction, there is a minimum Cash Margin limit which must be maintained by Customer during Futures Contract transaction as determined by the Bank from time to time. This is called the Maintenance Margin
Maintenance Margin = 70% of Initial margin. If the Initial Margin is <70%, the customer is required to top up the funds taken from the reserve margin.
II. Product Simulation
III. Risk of Product and Other Information
1. Market Risk
Due to negative impact on the performance of the Futures Contract due to changes in relevant market factors such as the structure of the interest rate period and others
2. Other Risk
The customer must increase the cash margin if the previous cash margin falls from the margin required by the bank. Initial margin decreases <maintenance margin, customer MUST top up, return initial margin = 100% following Bank COT. The customer does not top up, the Futures Exchange has the right to close the Customer's position at any time using the prevailing market price
IV. Facility / Channel
All Bank OCBC NISP Branch Offices can serve the transaction
V. Complaint Procedure
Customers can submit complaints related to products through:
1. Call OCBC NISP di 1500 – 999 (domestic call) atau 021-26506300 (overseas call)
2. Contact Relationship Manager (RM)
3. Email to firstname.lastname@example.org
4. Click www.ocbcnisp.com
Future Contract is a contract traded on a futures exchange to buy or sell a specific number of financial instruments in the future, at a certain price agreed between the parties that is legally binding. Futures contract transaction instrument refers to US Treasury Futures.
Capital gain potential when selling price is higher than buying price, and is one of the value protection strategy against INDON price fluctuation
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