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Stock Index Future |
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Stock Index FutureA security that uses composite stock indexes to allow investors to speculate on the performance of the entire market, or to hedge against losses in long or short positions. The settlement of the contracts is in cash.Stock Index Future Similar MatchesLondon International Financial Futures and Options ExchangeLondon International Financial Futures and Options ExchangeA futures and options exchange, located in London, which originally dealt only in financial instruments including equities (shares), government bonds, indices (such as the FTSE 100 Index) interest rates and a wide range of currencies. In 1996, LIFFE merged with the London Commodity Exchange with unified administration and exchange systems. All trades of the merged exchange are guaranteed by the London Clearing House (LCH). LIFFE is a Recognised Investment Exchange (RIE), regulated by the Financial Services Authority (FSA). Commodity Futures Trading CommissionCommodity Futures Trading CommissionCreated by the US Congress in 1974 to regulate exchange trading in futures. URL: http://www.cftc.gov FutureFutureA term used to designate all contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange. Stock futureStock futureIn agreement between a buyer and a seller to exchange an amount of cash at a fixed future date (the settlement date) that reflects the difference between the initial traded price and the price of the stock on the settlement date.For instance, buying one stock future contract of Vodafone at 230p represents 1,000 shares. If the shares are at 231p on the settlement date, the owner of the stock future would have made a profit of £10 (1,000 x 1p).The main feature of stock futures is 'leverage'. In the above example, it would cost £2,300 to buy 1,000 Vodafone shares, excluding commission and stamp duty. To get the same exposure, you'd only have to buy one stock future contract which might cost around £230. Hong Kong Futures Exchange (HKFE)Hong Kong Futures Exchange (HKFE)Established in 1976, the Hong Kong Futures Exchange (H.K.F.E.) operates futures and options markets in index, stock, interest rate, and foreign exchange products. Further SuggestionsFuture investment opportunitiesKuala Lumpur Options and Financial Futures Exchange (KLOFFE) Futures Commission Merchant Futures Industry Association Financial future Future Interest Spot futures parity theorem Commodity Futures Trading Commission (CFTC) National Futures Association Theoretical futures price Sydney Futures Exchange (SFE) Interest rate futures contract Underlying futures contract Commodity futures contract Future Acquired Property Currency futures contract universal stock futures Expected future cash flows Future value New York Futures Exchange (NYFE) Futures contract multiple Futures Mercato Italiano Futures (MIF) London International Financial Futures and Options Exchange (LIFFE) Rolling of Futures |
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