20060327 Which one would you trade? The FKLI April futures, or Bursamalaysia Bhd. the answer lies in the risk profile and effective use of capital. Buying one fkli april contract at the breakot level 915 would yield a return of 11 points or 35% return on initial margin deposit of RM1,500. Buying 100 shares wuld yield a return o 21% on a cost base of RM4.70 (within the timeframe that the futures contract went up the 11 points). It can be argued that the FKLI provides a flexible and more return/risk effective trading instrument. Of course trading the stock would make the stockbroker richer, as the commission costs are relatively high. Some in the stockbroking industry would argue that trading stock (contra in this case) provide free money. But what about the risks, which are infinite if no capital outlay is required.