SIF (Stock Index Futures) is used for trading, investments
and hedging. Using stock index futures in hedging, it includes hedging against an
equity index options or portfolio of shares.
Using SIF in trading, it can include volatility trading, which means the
greater the instability, the greater the probable profits. Generally, traders invest small investments
and they obtain small but offer usual profits. Investing through Stock index futures can also
give you experience and help you understand the financial market without even
buying shares directly.
Considering the performance of an individual stock is not a
sensible thing to do in index futures trading.
Because traders all over the world consider even the minute financial
variation very closely in the index futures and Index options.
Usually, indices are considered for information
sources. Traders can easily find how the
market is processed just by looking at the number. So, the purpose of the index is to confine the
entire stock market movements. It can be
obtained from the index through WA (weighted averaging) of extremely large
capital stocks. At goldmen-group.com
we can provide professional and personal service team who can help you find the
best-traded stock indices globally. We
can also help you with financial
portfolio and Capital Fund
Management.
Political and global economic instability can manipulate
indices values. The market movement news
can be anything from Japan’s unemployment rate to the Fiji’s political
instability. Any of these types of events can affect global traded
indices. In fact, the indices are the legislature
of their individual national potential
benefit markets and all around the world request to retreat during the
uncertainty movement.
Several factors affect the index value, including
forecasting of macroeconomic information, specific stock news. A great performance of a specific stock can
take the index rise up along with it. But,
looking at the performance of the individual stock is not a wise thing when you
are trading in the index futures.
Successful news of one stock can counterbalance by unsuccessful news
about other stock. Different sectors use
index futures in various ways. An agent
can use it as a program trading tool. He
can also use the index and stock value within for the small differences. Also,
the agent knows the market well and he prepares well as he is closest to the
financial market and does not need any transaction cost for managing/managed options.
A retail trader can use index futures as a platform to hedge his primary or underlying portfolio. Also, he can use it to contribute in a deep market meltdown or a rally. Most of the times, they can get the information about the market, but, sometimes it is difficult to know about the financial market’s spread risk. The retail investor is the one who sell or buy the index.
Submitted by:
Tower Financial Center
Calle Elvira Méndez, Panamá
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E-Mail: info@goldmen-group.com
www.goldmen-group.com