Commodities

Commodity price volatility is smaller than stocks and bonds; thus, providing an efficient and diverse portfolio options for market participants

Being one of the most popular instruments for the majority of global investment managers, commodity transactions have resulted in a high turnover of money in the commodity market. Commodities can be interpreted as objects of physical substance and are divided into two, which are mining commodities, such as gold, silver, oil and others, and agricultural commodities, such as sugar, rice, cocoa, coffee and others. Commodities are easier to understand because a lot depends on the fundamental conditions of demand and supply. Commodity price volatility is smaller than stocks and bonds; thus, providing an efficient and diverse portfolio options for market participants. What makes commodities more attractive and riskier in transactions than stocks is the amount of leverage. However, the risks in commodity trading market are lesser than user-determined risks. JFX (Jakarta Futures Exchange) and ICDX (Indonesia Commodity & Derivatives Exchange), as futures exchanges in Indonesia, work to develop the futures market through a more dynamic, transparent, and liquid system. Moreover, multilateral transactions allow many parties to buy and sell financial instruments on an exchange through electronic means.

The Benefits of Futures Contract Transaction

MARGIN/LEVERAGE

All futures contracts are traded on margin with a range of 2%10%
Example:
Contract: GOLDGR
Contract Size: 1 Lot = 100 grams
For instance, the price of gold is Rp. 495,000.
Value of 1 Lot of GOLDGR: 100 grams x Rp. 495,000 = Rp. 49,500,000
Margin per lot 4%: 4% x Rp. 49,500,000 = Rp. 1,980,000, rounded up to Rp 2,000,000,-.

TWO-WAY OPPORTUNITY

BUY position – buying a contract (investor wishes prices to go up)
SELL position – selling a contract (investor wishes prices to fall)

HEDGING

Offers producers the chance to hedge so they do not have to sell when prices are low. In addition, commodities can be a hedging option for other assets during inflation.

COMMODITY PRODUCTS

Topgrowth offers GOLDGR and CPOTR Commodity Futures Contracts, which are produced by the Indonesian Commodity and Derivatives Exchange (BKDI / ICDX).

Gold as an Investment

  • Since forever, gold has been trusted by market participants as a safe investment in hedging against anything, both in terms of economic, political, social crisis or currency crisis.
  • In volatile market conditions, investors will still opt to invest in gold and aim to sell it back to get a return on their investment.

ICDX

CONTRACT CONTRACT TYPE CONTRACT BASE Denomination Contract Size Tick Size Contract term Trading Hours
GOLDID Spot Loco London Spot Gold IDR 10 Troy Oz USD 0.10 /Troy Oz 07:00 – 04:30 (03:30 as long as DST)
GOLDID Spot Loco London Spot Gold USD 10 Troy Oz USD 0.10 /Troy Oz 07:00 – 04:30 (03:30)
GOLDGR Futures ANTAM Gold IDR 100 Gr Rp 100/gr 1 year 07:00 – 04:30 (03:30 as long as DST)
UBSGFutures Futures UBS Gold IDR 100 Gr Rp 100/gr One week
 (Wed-Tue) 10.00 – 16.00

BBJ

CONTRACT CONTRACT TYPE CONTRACT BASE Denomination Contract Size Tick Size Contract term Trading Hours
GOLJFX Futures ANTAM Gold IDR 1.000 Gr Rp 50/gr 3 months in a row 09.30 – 17.30
KGEJFX Spot ANTAM Gold IDR 1.000 Gr Rp 50/gr 09.30 – 17.30
KGEUSDJFX Spot Loco London Spot Gol USD 100 Troy Oz USD 0.05 /Troy Oz 07:00 – 01:30
(summer) 07:00 – 02:30
(winter)
GOL250 Futures ANTAM Gold IDR 250 Gr Rp 50/gr 3 months in a row 09.30 – 17.30
GOL100 Futures ANTAM Gold IDR 100 Gr Rp 50/gr 3 months in a row 09.30 – 17.30

Cpo & Olein

  • CPO and Olein originate from the same plant, which is the palm species known as E. Guineesis. The plant grows in Southeast Asia, Africa, and Latin America, and has been consumed for more than 5,000 years.• CPO (palm oil) is extracted from the flesh of E. guineesis, using bright orange pressure due to the high content of carotene pigments. Palm oil is widely used in butter and margarine.• Olein is basically palm oil that is further processed to produce Olein and Stearin. Olein is a room temperature liquid that is very heat resistant. Golden color Olein is used as oil for frying.

Bursa ICDX

Code Contract Denomination Contract Unit Minimum Price Change (Tick Size) Settlement-to-Market Quality
CPOTR IDR 10 Metric Ton (10.000 kg) Rp. 5,- per Kg Sellers and buyers can submit by: Exchange for Physical (EFP) or Alternative Delivery Procedure (ADP); aside from the aforementioned procedures, sellers and buyers agree to settle in cash § Free Fatty Acid max. 4.5%; Moisture and Impurities max. 0.5%
O L E I N BBJ ICDX
Contract Unit OLEJFX OLE10 OLEINTR
Code Contract 20 Ton (20.000 Kg) 10 Ton (10.000 Kg) 10 Ton (10.000 Kg)
Denomination IDR IDR
Minimum Price Change (Tick Size) Rp. 5/Kg Rp. 5/Kg
Contract Term 6 months in a row 12 months in a row
Trading Hours 09:30 – 17:30 09.30 – 17.00
Quality Standards
Free Fatty Acids (FFA) ≤ 0.15% AOCS Method Ca 5a-40 Max 0.1%
Moisture & Impurities ≤ 0.1% AOCS Method Ca 2b-38 AOCS Method Ca 3a-46 maks. 0,1%
Iodine Value (WIJS) ≥ 56 AOCS Method Cd 1d-92 Min. 56
Red Colored(Lovibond 5.25”) ≤ 4 Red AOCS Method Cc 13b-45 Max 4 Red
Slip Melt Point ≤ 24°C AOCS Method Cc 1-25 Max 24⁰C
Cloud Point 10.75°C
Minimum Submission Unit 2 lots (20 Metric Ton) with a +/- 2% tolerance