How much can you lose on 1 contract?
The answer is a lot. There were these 2 fellas who bought the fcpo futures at 2300. The trend at that time was still UP they surmised, as there was a certain BIG hedge fund manager from Singapore who had long ghe fcpo futures with a size of 1000 contracts. The 'fundamentals' were with them, as Dorab Mistry said "El Nino could propel the price to RM3,000 per tonne by year end 2014".
They were very 'safe' and earmarked RM50k for that 1 contract. You can see how much 1 contract in the wrong side cna cost.... And the BIG fund manager?
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