KUALA LUMPUR (March 21): Bursa Malaysia Derivatives Bhd is set to relaunch its single stock futures (SSF) contract next Monday (March 24).

SSF is a futures contract based on a single stock, allowing investors to profit from market fluctuations. It involves buying or selling a set number of shares at a fixed price at a future date, making it a useful tool for hedging risks.

In a statement on Friday, Bursa Malaysia said the SSF has been revamped, and will be based on constituents of the FTSE Bursa Malaysia KLCI (FBM KLCI), which includes the 30 largest companies listed on the Main Market by market capitalisation.

The new SSF features a reduced contract size of 100 shares per contract, down from 1,000, making it more accessible to investors and more effective for hedging.

To enhance affordability, the contract will now require a low initial margin, starting at just 10% of the contract value, allowing traders to enter the market with a lower capital outlay.

Additionally, position limits have been increased to 13,500 contracts across all contract months, offering investors greater flexibility in portfolio management.

The revamped SSF will be available for trading Monday to Friday, from 8.45am to 5.15pm, covering both morning and afternoon sessions.

Bursa Malaysia Derivatives chairman and CEO Datuk Fad'l Mohamed said the SSF relaunch aligns with the exchange’s goal of expanding market opportunities and increasing investor participation in derivatives trading.

"This initiative underscores our commitment to meeting the growing demand of Malaysian investors for diversified investment tools and enhancing market liquidity," he added.

Bursa Malaysia Derivatives director Mohd Saleem Kader Bakas, meanwhile, highlighted that SSF enables investors to refine their strategies, hedge positions and manage portfolio risks effectively.

"Designed with retail investors in mind, this versatile tool adapts to various market conditions," he said.

While SSF offers new opportunities, investors are advised to understand the product, assess their risk appetite and stay informed of market trends.

Market participants are encouraged to consult licensed brokers and utilise available resources to make well-informed trading decisions.