Logo of Phnom Penh Post newspaper Phnom Penh Post - Golden FX Link: Derivatives market primed for healthy, steady growth




Golden FX Link: Derivatives market primed for healthy, steady growth

Content image - Phnom Penh Post
A series of educational workshops carried out across the Kingdom with the help of the SECC has aided the rapid growth of the derivatives market. Photo supplied

Golden FX Link: Derivatives market primed for healthy, steady growth

Cambodia’s $100 million derivatives market is certainly moving full steam ahead, with even the fallout of the Covid-19 pandemic failing to slow the industry’s progress.

More and more Cambodians are taking advantage of the convenience of trading on digital platforms to test their investment skills in the derivatives market to earn extra money, which is continuing to fuel growth in an industry that is still in its infancy.

Content image - Phnom Penh Post
Golden FX Link Capital Co Ltd CEO Chea Sothea. Photo supplied

Golden FX Link Capital Co Ltd CEO Chea Sothea said that with trading being largely online-based, performance in the industry had picked up pace despite the impact of the coronavirus outbreak.

“The derivatives industry is growing steadily and healthily. According to the SECC [Securities and Exchange Commission of Cambodia], trading volume in 2017 was only $5 million, but this increased to more than $100 million last year.

So far this year, we have already achieved 80 per cent of the trading volume conducted in 2019.

“We are certain that we can surpass the 2019 figure this year. Since it is an online business, the public is able to trade 24 hours a day, five days a week. People can trade using their computers or tablets, or even with their smartphones. This is one great advantage of the derivatives business,” said Sothea.

A derivatives market is the mechanism through which financial instruments such as future contracts or options are traded.

Derivatives trading in the Kingdom made its mark after the launch of the Cambodian Derivatives Exchange (CDX) in 2016, and currently more than 100 financial instruments including options and futures contracts can be traded through the various brokers licensed by the SECC.

The spot trading of gold, currencies and crude oil is currently proving popular among Cambodian investors.

Golden FX Link, which started operations in 2016, is a major player in the growing derivatives industry.

According to the SECC’s first quarterly report, the company has emerged as the top derivatives broker in the Kingdom based on trading volume. Thirty derivatives brokers drive the sector.

Content image - Phnom Penh Post
Golden FX Link Capital staff carry out a public awareness campaign. Photo supplied

“The total number of trading transactions keeps increasing from month to month. The higher number of transactions reflects greater knowledge of the market and means more participation from market players, especially traders and investors. It is good for the industry and for the development of our national economy.

“More people are aware of the derivatives market because our mission is to educate the public on this. Along with the SECC and the CDX, as well as carrying out face-to-face training via video and Facebook, we have conducted workshops in 24 provinces and Phnom Penh.

“We have a strong workforce – with customer service, risk management and business teams who supply daily analysis to our clients so that they are well updated on movement in the market,” said Sothea.

Golden FX Link uses the MetaTrader 4 electronic trading platform as an online solution for investors, who can see the live streaming of prices and charts, place orders and manage their accounts.

Cambodia is witnessing a new phenomenon – one that is already proving itself resilient to even the most powerful of shocks – and with its capital and derivatives market continuing to expand, the Kingdom’s financial sector is further supported.

MOST VIEWED

  • Tourists urged not to skip trip

    The Ministry of Tourism has called on international tourists not to cancel trips to Cambodia, but urged them to adhere to several dos and don’ts when arriving in the Kingdom during the Covid-19 pandemic. The ministry released an eight-point instruction manual on Wednesday published

  • The taxman cometh – Cambodia’s capital gains tax casts the net on individual taxpayers

    In a country where only limited personal income tax existed, the new taxation law beginning January 1, 2021, will make taxpayers out of Cambodians, whether they are ready for it or not About two years ago, a little known amendment was made to Article 7 of the Law

  • Cambodian-American gets Star Trek treatment

    Kevin Ung, a Cambodian-American whose family escaped genocide during the Khmer Rouge’s reign of terror, was recently selected from thousands of applicants to participate in the Television Academy Foundation’s inaugural 2020 Star Trek Command Training Programme, a course intended to give hands-on filmmaking experience

  • Cambodia seeks to be transport hub

    Cambodia is working on several fronts to modernise its transport infrastructure and services, concentrating on opening new international gates to relieve and balance traffic congestion at its borders, Minister of Public Works and Transport Sun Chanthol said on Thursday. This is part of the Kingdom’

  • PM: West unfair to Cambodia

    Prime Minister Hun Sen released a message celebrating the International Day of Peace on Monday, saying that some major powers and western countries had been systemically cooperating to put political pressure on Cambodia as they did in the 1970s and 1980s. Hun Sen said pressuring

  • Singapore Fintech start-up enters Sihanoukville

    Singapore-based fintech start-up Fincy on Wednesday announced the expansion of its cashless payment system to Sihanoukville to tap into the southwestern coastal city’s ever-widening business and investment landscape. The move is in line with the National Bank of Cambodia’s (NBC’s) recommendations to