PETALING JAYA: Most Malaysian retail investors tend to shy away from derivatives as they perceive it to be too “complex”, says Bursa Malaysia Derivatives Bhd CEO Jamaluddin Nor Mohamad.

He said there was a lack of in-depth understanding of derivatives and the benefits of investing in these products.

“Derivatives are widely used by investors as an instrument to hedge and manage their risks.

“With the highly-leveraged investments that derivatives offer, it essentially means that investors can get greater exposure to the underlying asset by paying a small outlay or margin,” he said.

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