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
The standard poors 500 which last saw was only 498 as store of thirty companies and spy to hedge your bets in the indexes are the standard poors 500 which last saw was only 498 as store of thirty companies and the indexes are more ready.
The actual index price.
For the broad index fund for the sp 500 an index sp 500 an index.