stock index futures
Definition
Agreements to buy or sell a standardized value of a stock index, on a future date at a specified price, such as trading New York Stock Exchange composite index on the New York Futures Exchange (NYFE). As an investment instrument it combines features of securities trading based on stock indices with the features of commodity futures trading. It allows investors to speculate on the entire stockmarket's performance, short sell (see short sale) an index with a futures contract, or to hedge a long position against a decline in value.
stock index futures is in the Disaster Planning & Risk Management, Investing and Securities & Futures Trading subjects.
stock index futures appears in the definition of the following term: portfolio insurance
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