BUSINESS OPPORTUNITIES IN FURTHER EXCHANGE

Bullish Market

Bullish market is a market movement that tends to go up. Investors can open transaction positions by buying first at low prices. Then close the position by selling (selling) at a high price. (Profit is the difference in price points at the time of opening and closing a position.)

Example:
Investor A transacts by buying (open buy) 2 lots of Hang Seng Index at the price of 15,000, then selling (close selling) on the same day at the price of 15,100
Calculation:
Loss / profit = ((15,100 – 15,000) x 50,000 IDR x 2 lots)
= IDR 10,000,000

Bearish Market

Bearish market is a market movement that tends to decline. Investors can take advantage of these market opportunities by opening a sell market position (Sell) first, and then closing the position by buying (Buy). Example: Investor B deals by selling (open sell) 2 lots of Nikkei Index at prices

Example:
Investor B deals by selling (open sell) 2 lots of Nikkei Index at prices

14,500 and then bought (closed buy) on the same day at the price of 14,400
Calculation:
Loss / Profit = ((14,500 – 14,400) x IDR 30,000 x 2 lots))
= IDR 6,000,000
However, if the market conditions are opposite or not in accordance with the buy position (open buy), the loss will be suffered by investor A can be seen in the following example:
Hangseng Index
Buy 15000 sell 14900, then calculate Loss / Profit as follows:

1. ((14,900 – 15,000) x Rp. 50,000 x 2 lots)) =
   -100 x 50,000 x 2 = Rp. – 10,000,000

   Nikkei
   ((14,500 – 14,600) x IDR 30,000 x 2 lots) =
   -100 x 30,000 x 2 = Rp. – 6,000,000

   NOTE:
   The possibility of losses or gains in Futures Contract Trading can reach a very large amount. Therefore, you must be careful in deciding whether to make a transaction if your financial condition is sufficient. So what you should pay attention to in Futures Contract Trading, is as follows:

   Futures Contract trading is not necessarily feasible for all investors.
   Futures Contract trading has risks and has the possibility of unlimited losses that are far greater than the amount of money deposited (Margin) to the Futures Broker.
   Be wary of statements that you will definitely benefit greatly from Futures Trading. Because with a large risk, it will not necessarily be profitable.
   Due to the leverage mechanism and the nature of the Futures Transaction, you can feel the impact that you are losing at a fast time.
   When the market is in a certain market condition, it may be difficult or impossible to liquidate a position. In general, you must make an offset transaction if you want to liquidate a position in a Futures Contract.
   When the market is in certain circumstances you may find it difficult or impossible to manage the risk of the open position of the Futures Contract by opening a position with the same value but with opposite positions in the contract of different months or in different “Futures Contract subjects”.

   You may be required to complete the Futures Contract by physical submission of the “subject of the Futures Contract”.
   You can suffer losses due to information system failure.
   All futures contracts have risks and there is no trading strategy that can guarantee to eliminate those risks.
   Daily trading strategies in futures contracts and other products carry special risks.
   Establishing conditional mandates such as futures contracts are liquidated in certain circumstances to limit loss (stop loss), may not be able to limit your losses to a certain amount as well.
   You must read carefully and understand the Customer Trust Agreement with your Futures Broker before entering into a Futures Contract transaction.
   This brief statement cannot contain in detail all the risks or other important aspects of futures trading. Therefore, you must study futures trading activities carefully before deciding to make a transaction.