Trading options on index futures
For more information on these contracts, please see the section on Dividend Derivatives. This product is suited to both professional and private investors who want to gain exposure to basket of listed companies without purchasing individual shares or Single Stock Futures.
When trading in Equity Index Futures, market participants can either buy long or sell short. The products are traded by speculators hoping to make a profit on short-term movements and investors seeking to hedge or diversify their portfolios. Turn on more accessible mode.
Turn off more accessible mode. Equity Index Futures Equity Index Futures are derivatives instruments that give investors exposure to price movements on an underlying Index.
For more information on these contracts, please see the section on Dividend Derivatives Who is this for? Features Gearing provides a capital efficient way to gain exposure to basket of shares.
This creates greater volatility which amplifies gains and losses Incurs lower brokerage fees than actually trading in the underlying shares Allows investors to take advantage of price movements in the underlying index Liquid and easily traded Allows for Portfolio diversification Provides short selling opportunities to benefit from downward price movements.
The yellow rectangle marks the closing price of December 19th and opening price of December 20th as an unfilled gap. Hint — not every gap has to get filled. If we place Fibs on the above chart then we get some interesting coincidences. The Fibs are attached to the low of December 20th and the highest point on February 29th. It is interesting to observe that the pull back of March 6th was to exactly the Also observe how the 50 day Simple Moving Average is not violated to the downside.
In fact it nicely lines up with the big diagonal trend line. The fact that the Simple Moving Average is not broken could be construed as a sign of strength. Keep an eye on it because that area of the overlaid 50 SMA and the trendline might be a good point for a long entry. Keep that in mind when choosing between the two. Disclaimer This newsletter is written for educational purposes only. By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever.
Trading and Investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader. The author may or may not have positions in Financial Instruments discussed in this newsletter. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results.