PORTALJABAR, BANDUNG CITY - Some people are certainly familiar with investment products in the capital market such as shares, bonds, government debt securities or mutual funds. However, more skilled investors are usually familiar with more sophisticated products such as derivatives.

Head of the Indonesian Stock Exchange (BEI) West Java Representative Office, Achmad Dirgantara, said that derivative products are agreements or contracts between two parties to sell or buy an asset in the future at a predetermined price.

"Derivatives are generally used by market players as a means to carry out leveraged transactions to gain more profits, as an exchange to take advantage of price disparities in the market, as well as for hedging or hedging their portfolios," said Achmad, in Bandung Monday (20/5/ 2024).

According to Achmad, the derivative products on the IDX are financial derivatives, namely derivatives based on financial instruments such as shares, bonds, stock indexes, bond indices, or other financial instruments.

"Derivative products traded on the IDX include IDX LQ45 Futures, Indonesia Government Bond Futures, IDX30 Futures, and Basket Bond Futures. In the near future, the IDX will launch a new derivative, namely Single Stock Futures (SSF) which uses stock underlying assets," he explained. .

SSF is a product that is different from other IDX derivative products. Other financial derivatives currently traded on the IDX are based on stock indices and government debt securities, while the underlying securities for SSF are shares.

SSF has several advantages compared to other IDX derivative products, one of which is the lowest contract unit compared to other derivative products so that the capital needed by investors to start investing in SSF is smaller.

"Investors can buy a share only by paying a minimum of 4% of the total capital issued if buying ordinary shares," said Achmad.

For the first stage, BEI will launch SSF using 5 shares in the LQ45 index as the underlying SSF. These shares include BBCA, BBRI, TLKM, ASII, and MDKA with each underlying having a contract period of 1 month, 2 months and 3 months, so in total there will be 15 SSF series that will be launched.

Currently, IDX together with derivative exchange members are in the preparation process to be able to offer SSF products to the general public. Apart from that, BEI also continues to hold regular outreach and education regarding non-stock products including derivative products so that investors gain a deeper understanding and can start utilizing these products.