FCPO Contract Specifications

Now that you know what FCPO is, let's look at the exact specifications of one contract.

Contract Size: 25 Tonnes

Every FCPO contract represents 25 metric tonnes of crude palm oil. You cannot buy partial contracts—it's always in multiples of 25 tonnes.

Price Quotation: RM per Tonne

FCPO prices are quoted in Ringgit Malaysia (RM) per metric tonne.

Example: If FCPO is trading at RM 3,950, that means RM 3,950 per tonne.

Tick Size: RM 1 = RM 25

The minimum price movement (tick) is RM 1 per tonne.

Since one contract = 25 tonnes:

• RM 1 move per tonne = RM 25 profit or loss per contract
• RM 10 move = RM 250 profit or loss
• RM 100 move = RM 2,500 profit or loss

Margin Requirement: ~RM 4,000

To trade one FCPO contract, you need approximately RM 4,000 as initial margin (deposit).

This amount varies by broker and market conditions, but typically ranges from RM 3,800 to RM 4,500.

Contract Months Available

FCPO trades with current month + 6 forward months available.

Trading Hours

Monday to Friday:

• Morning: 10:30 AM - 12:30 PM
• Afternoon: 2:30 PM - 6:00 PM
• Total: 5.5 hours per day

Quick Reference Table

Next: Understanding Leverage

You might be wondering: "If contract value is RM 98,750, why do I only need RM 4,000?"

Answer: Leverage. This is covered in the next article.