Invest in Southeast Asia Commodities to receive up to 100% trading fee discount

Commodity derivatives investment is the activity of buying and selling financial products based on the price of commodity derivative contracts. This allows investors to access the commodity market more easily and invest in the price of commodities without owning the actual product.

Commodity investment products are commodity contracts including commodities listed by the Vietnam Commodity Exchange (MXV) and licensed by the Ministry of Industry and Trade . Currently, MXV is trading more than 50 commodities in 4 main groups: Agricultural products, Energy, Metals, Industrial raw materials.

Investors participating in the market will make profits from the price difference of commodity futures contracts. A standard commodity futures contract is a financial instrument whose value depends on the price of the underlying asset, belonging to industries such as agricultural products, industrial raw materials, metals, and energy.

Types of commodity contracts

There are four common types of derivative contracts: futures, forwards, options, and swaps.

Futures contract

A futures contract is a contract between two parties to buy or sell an asset at a specific future date at a price agreed upon in the contract. The asset traded in a futures contract can be any commodity such as agricultural products, metals, etc.

For example: On January 1, 2024, Party A signs a forward contract to buy 1 ton of coffee from Party B for a term of 2 months at a price of VND 85,000/kg. After 2 months, that is, on March 1, 2024, Party B must sell Party A 1 ton of coffee at VND 85,000/kg and Party A must buy 1 ton of coffee from Party B at that price. This price cannot be changed regardless of whether the price on March 1, 2024 is higher or lower than VND 85,000/kg.

The difference between the contract price and the price at the future date is the basis for calculating the profit/loss for the buyer or seller. This is a type of futures contract, often used by investors to speculate on prices or limit future interest rate risks.

Futures Contract

A futures contract or forward contract is a type of derivative contract between a buyer and a seller to trade a certain asset at a specified time in the future. That is, at the present time, the parties will agree on a contract to buy and sell an asset with the transaction time and transaction price determined at a future time.

Option contract

If the above two derivative contracts require both parties to buy/sell at an agreed price, the option contract allows the investor to choose not to buy/sell if the transaction is deemed unprofitable. The option contract allows the signer to have the right to buy/sell a certain quantity of goods at a certain price at a certain time.

An option contract is a financial instrument that gives the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price on or before the contract’s expiration date. However, whether the buyer decides to exercise or cancel the contract, he or she must pay a certain fee, called the option premium, to the seller.

Swap contract

A swap is a contractual agreement between two parties under which the parties agree to exchange their obligations to make periodic payments or to exchange future cash flows in a predetermined manner and over a predetermined period of time.

Advantages of investing in commodities

High liquidity

Futures contracts are traded every day all over the world with a "huge" volume of contracts. Therefore, the liquidity of this market is very large. On average, crude oil is about 1.2 million contracts per day, corn is more than 350,000 contracts per day, soybeans are 200,000 contracts per day (Source: MXV)

Is a legal transaction and protected by law

Commodity investment through the Vietnam Commodity Exchange is licensed by the Ministry of Industry and Trade under Decree 51/2018/ND-CP.

Two-way transaction

With an option contract, the option holder has the right to buy (when the market is up) or sell (when the market is down) a certain asset at a predetermined price within a certain time to seek profit. Using this tool, investors can seek profit whether the market is up or down.

Transparent transactions

Trading products such as wheat, corn, coffee, etc. mainly operate on the principle of supply and demand worldwide. Manipulating commodity prices by an individual or organization is extremely difficult. Information about commodities is always updated multi-dimensionally on all media, helping investors easily grasp and creating a transparent playground for investors.

Invest in commodities with SACT

If you are interested and want to learn and invest in this market with a small capital, please contact Southeast Asia Commodity Trading Joint Stock Company immediately. SACT is currently a business member 045 of the Vietnam Commodity Exchange. SACT is not only a financial company, but also a reliable partner of investors, businesses and individuals interested in the derivatives market.

Coming to SACT, investors will get:

- Instructions on how to place orders and recommendations on information related to the commodity market

- Provide market information system and give investment comments and recommendations

- Support consulting on short, medium and long term investment strategies.

- Reduce goods deposit fee by 50% compared to the market

- Consulting on coffee price protection for farmers, traders and businesses.

Currently, SACT is offering many attractive incentive programs for new investors such as exclusive transaction fee refunds, free transactions for any item, super preferential deposit fee reduction,... when opening a commodity trading account at the company. Quickly open an account to get advice and enjoy exclusive incentives at SACT!./.

For more information please contact:

- Southeast Asia Commodity Trading Joint Stock Company

Hotline: (094) 543 5430

Email: [email protected]

Website: https://hanghoaphaisinh.com/

Address: CT36A Dinh Cong - Hoang Mai - Hanoi

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