Difference between index future and index option trading


For more information on these contracts, please see the section on Dividend Derivatives. It looks like your browser does not have JavaScript enabled. Market participants therefore can profit from the price movements of a basket of equities without trading the individual constituents.

Market participants therefore can profit from the price movements of a basket of equities without trading the individual constituents. Please turn on JavaScript and try again. 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.

It looks like your browser does not have JavaScript enabled. This creates greater volatility which amplifies gains and losses Incurs lower brokerage fees than actually difference between index future and index option 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. Equity Index Futures are derivatives instruments that give investors exposure to price movements on an underlying Index. To remove this dividend risk the JSE has created dividend neutral index futures which removes this assumption risk.

For more information on these contracts, please see the section on Dividend Derivatives. Turn off more accessible mode. Equity Index Futures are derivatives instruments that give investors exposure to price movements on an underlying Index.

In the case of derivatives, you have no voting rights difference between index future and index option trading any other ownership rights that would traditionally fall to a holder of the underlying equity Cash settled at maturity. In the case of derivatives, you have no voting rights or any other ownership rights that would traditionally fall to a holder of the underlying equity Cash settled at maturity. Traditionally futures take out the implied dividends of the underlying over the life of the contract. Features Gearing provides a capital efficient way to gain exposure to basket of shares. Undeclared dividends are based on dividend assumptions which may prove to be incorrect.

Features Gearing provides a capital efficient way to gain exposure to basket of shares. 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. To remove this dividend risk the JSE has created dividend neutral index futures which removes this assumption risk. Difference between index future and index option trading more information on these contracts, please see the section on Dividend Derivatives Who is this for?