Energy Product Derivatives - Cambodia

Cambodia

The nominal value in the Energy Product Derivatives market is projected to reach US$20.98bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.73% resulting in a projected total amount of US$27.72bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.36 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$26,910.00bn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 62.09k by 2029.

Market

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Analyst Opinion

Cambodia, a country known for its rich cultural heritage and historical landmarks, is also witnessing interesting developments in the Energy Product Derivatives market.

Customer preferences: In Cambodia, customers are showing an increasing interest in Energy Product Derivatives as a way to diversify their investment portfolios and hedge against market volatility. The demand for these financial instruments is being driven by a growing awareness of the benefits of derivatives in managing risk and maximizing returns.

Trends in the market: One notable trend in the Cambodian Energy Product Derivatives market is the rising popularity of futures contracts linked to energy commodities. Investors are attracted to the potential for significant returns offered by these derivatives, especially in a market where energy consumption is on the rise. Additionally, options trading is gaining traction among sophisticated investors looking for more flexibility in their trading strategies.

Local special circumstances: Cambodia's strategic location in Southeast Asia and its increasing integration into the global economy are creating favorable conditions for the development of the Energy Product Derivatives market. As the country continues to experience economic growth and infrastructure development, there is a growing need for risk management tools, making derivatives an attractive option for both institutional and retail investors.

Underlying macroeconomic factors: The stability of Cambodia's economy, coupled with the government's efforts to promote foreign investment, is providing a conducive environment for the expansion of the Energy Product Derivatives market. Moreover, the country's focus on renewable energy sources and sustainable development is shaping investor sentiment towards energy-related derivatives, reflecting a broader global trend towards green investments.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.