Bursa Malaysia Derivatives Relaunches Single Stock Futures: What Investors Need to Know

A new chapter for retail investors starts 24 March 2025

Bursa Malaysia Derivatives is set to relaunch its revamped Single Stock Futures (SSF) on Monday, 24 March 2025, with one clear mission: to make futures trading more accessible, flexible, and investor-friendly. The reintroduction of SSF brings some significant changes that could reshape how Malaysian investors hedge risks and capitalise on market movements—especially in today’s increasingly dynamic trading environment.

What’s New with SSF?

At the heart of the revamp is a smaller contract size—now just 100 shares per contract, down from the previous 1,000. This means more investors, especially those new to derivatives, can now participate without needing large amounts of capital.

The contract also comes with a low initial margin requirement, starting from only 10% of the contract value, making it an affordable entry point for traders who want to test the waters of futures trading. Add to that increased position limits of up to 13,500 contracts across all months, and you’ve got a product built for both flexibility and scalability.

Why This Matters

For the first time, investors can trade SSF based on the 30 largest companies in the FTSE Bursa Malaysia KLCI (FBM KLCI)—the most watched index in the country. This opens the door for investors to hedge or speculate on big-name stocks in a more cost-effective way.

Whether you're bullish or bearish on a stock, SSF lets you take a position without having to buy or sell the actual shares. It's a smart way to manage exposure, limit downside risk, or amplify upside potential, especially for those who already own equities and want to hedge against volatility.

Expanding Opportunities for All

This relaunch is part of Bursa’s broader strategy to promote multi-asset investing and attract a more diverse pool of market participants. “This initiative underscores our commitment to expanding market opportunities for all investors,” said Dato' Fad’l Mohamed, Chairman of Bursa Malaysia Derivatives and CEO of Bursa Malaysia.

Mohd Saleem Kader Bakas, Director of Bursa Malaysia Derivatives, echoed this sentiment: “SSF is designed with retail investors in mind. It’s a flexible, powerful tool that can perform in various market conditions.”

Trading Hours and Getting Started

The new SSF will be available for trading Monday through Friday, 8:45 AM to 5:15 PM, with both morning and afternoon sessions. Investors interested in trading should consult their licensed brokers, understand the product’s mechanics, and stay updated with market movements.

Final Thoughts: Is SSF Right for You?

The updated SSF offers lower capital outlay, greater flexibility, and a broader range of strategies—from hedging and risk management to market speculation. But as with any trading instrument, it’s crucial to understand how it works before jumping in.

If you’re looking to level up your investing game with a more sophisticated strategy—or just want to protect your portfolio from short-term shocks—the new SSF might be worth a closer look.

As always: Trade smart, stay informed, and know your risk.