What the heck is the ‘Underlying Product I am agreeing to buy or sell when trading Stock Indexes?
June 30th, 2008
amerriboy asked:
What the heck is the ‘underlying product’ at a specific price, and future date am I agreeing to buy or sell when I trade Stock Index Futures. I figure a E-mini Futures Contract for a commodity such as corn or soy beans derives it’s value from the ‘underlying product the commodity itself hence the contract is a derivative. So my question is …On what asset, is a flipping statistic such as a ’stock index’ based. I need to be enlightened Thanks?
KUFFEL
What the heck is the ‘underlying product’ at a specific price, and future date am I agreeing to buy or sell when I trade Stock Index Futures. I figure a E-mini Futures Contract for a commodity such as corn or soy beans derives it’s value from the ‘underlying product the commodity itself hence the contract is a derivative. So my question is …On what asset, is a flipping statistic such as a ’stock index’ based. I need to be enlightened Thanks?
KUFFEL








