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CAPITAL INVOLVED

STOCK MARKET
100% Capital is required. For margin trading account, a capital of
30% - 50% is required as deposit [ with interest ]
Ex : You purchase shares worth RM500,000.00 You are required to have a capital of RM500,000.00

SPOT INDEX MARKET
Margin requirement of 2% of contract value is required as deposit.
Ex : If the current index value is at 12000 point, then the actual contract value is USD120,000.00 [ RM456,000.00 ] , You are only required to have a deposit of USD2,000.00 [ RM7,600.00 ] to buy / sell in the market.

TRADING PATTERN

STOCK MARKET
A one way market - can only make profit on a uptrend [ Buy Low - Sell High ]

SPOT INDEX MARKET
A two way market - opportunity to make on a up or a down trend [ Buy Low - Sell High : Sell High - Buy Low ]

LIQUIDITY

STOCK MARKET
Time taken for execution of orders as buyers and sellers must be available and the price executed may not be at a desired level.

SPOT INDEX MARKET
Confirmation of orders can be done easily because of the high trading volume.

RISK FACTOR

STOCK MARKET
The risk cannot be controlled in a depression. it may take months for the market to recover. The stock counters are also exposed to mulpractices and the risk of being suspended.

SPOT INDEX MARKET
Losses can be minimized and controlled. The risk factor is controllable with strict adherence to risk management practices. In the case of hedging, the risk is being transferred.