index futures


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Index futures

A futures contract on an index (such as a foreign stock index) in the futures market.

Index Future

A futures contract in which the holder agrees to buy an index (such as the Dow Jones Industrial Average) at a certain price on a stated date in the future. One makes a profit from an index future if the price of the index is above the price of the index future on the date the contract matures. One loses if the price of the index is below the price of the future. Because one cannot physically buy an index, index futures are settled in cash.

index futures

Futures contracts on stock indexes such as the S&P 500. Index futures are settled in cash.
References in periodicals archive ?
Micro E-mini equity index futures are one-tenth the size of CME Group's existing E-mini equity index futures, and offer traders of all sizes a simple, flexible way to access the equity index futures markets.
The MSCI Tadawul 30 Index (MT30) has been designed with tradeability, investability and capping criteria to be able to serve as the basis for index futures and other financial products including derivatives and exchange-traded products."
By trading the index futures, investors can hedge their positions, make use of leverage to magnify the outcome of their trades and make gains depending on whether the index is rising or falling.
Intercontinental Exchange (NYSE:ICE) revealed on Tuesday a record trading week for the NYSE FANG+TM Index futures contract.
Liu also announced plans for 2018 that include the launch of RHF and RTF Index Futures, Nasdaq Index Futures, and having more futures products available at after-hours trading sessions.
Magdi Shannon, Head of Trading at SHUAA added that the launch of index futures will add to the depth of instruments available to investors to meet their investment needs and hedging strategies.
The index futures was launched at the China Financial Futures Exchange (CFFEX) and started trading from April 16, 2010.
CME Group has launched CME Bloomberg Dollar Spot Index Futures, available for trading on CME Globex electronic trading platform effective April 4, 2016, pending all relevant regulatory review periods, the company said.
On the day, a higher opening in Europe and a firm trend in US index futures with a rebound in crude ahead of US jobs data for January, positively impacted sentiments here.
As a powerful financial tool, stock index futures can help curb abnormal stock market fluctuations and effectively avoid investment risk by virtue of the primary functions of price discovery, hedging, and arbitrage; moreover, this tool is widely used in both developed and developing countries.
"Our portfolio of derivatives products across Asian equity index futures and key commodities futures, as well as our clearing capabilities demonstrate the success of SGX and Singapore as a risk management centre."
Standard & Poor's 500 Index futures were 0.1 per cent higher and those on the Euro Stoxx 50 Index added 0.3 per cent.