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Stock Index Futures

About This Course

A futures contract is a public transaction that takes place on an organized futures exchange. The contract is standardized which the exchange sets the terms and conditions, except the price. Since the time when organized futures trading appears to have originated in Japan during the early Tokugawa era around the seventeenth century, financial futures have become so successful that they now constitute the bulk of all futures trading and have become an indispensable tool for financial risk management by companies and fund managers.

This short course will focus on understanding the mechanics of stock index futures and their uses in trading, hedging, and asset management.

Learning Outcomes

  • Understand how futures contracts, especially stock index futures, work
  • Understand contract standardization and its importance
  • Know the role Clearinghouse plays and the purpose of mark-to-market and price limits
  • Learn the essential pricing principles for stock index futures
  • Know the various general trading strategies utilizing stock index futures
  • Know the various ways fund managers could make use of stock index futures

Module 1: Introduction to Futures Contract

  • History of Futures Trading

Module 2: Contract Standardization

  • Expiration Dates
  • Contract Value
  • Trading Hours
  • Contract Standardization Promotes Liquidity

Module 3: Clearinghouse, Margins, and Price Limits

  • Futures Margins
  • Mark-to-Market
  • Settlement Price
  • Price Limits
  • Offsetting Futures Positions
  • Cash Settlement
  • Special Quotation

Module 4: Pricing Stock Index Futures

  • Basis
  • Basis Convergence
  • Cash-Futures Arbitrage

Module 5: Trading Stock Index Futures

  • Outright Futures Trading
  • Rolling Positions
  • Spread Trading

Module 6: Fund Management Applications of Stock Index Futures

  • Beta Adjustment
  • Cash Equitization
  • Creating Equity Out of Cash
  • 130-30 Strategies
  • Portable Alpha Strategies

Assessment

The Financial Training Scheme (“FTS”)

The Financial Training Scheme (“FTS”) is a training incentive scheme supported by the Financial Sector Development Fund (FSDF). The scheme supports financial sector-specific training programmes that raise the competency of the financial sector.

All our programmes are approved for listing on the Financial Training Scheme (FTS) Programme Directory and are eligible for FTS claims, subject to all eligibility criteria being met. For latest development on the Enhanced Funding Support for IBF FTS, please visit the Financial Training Scheme site.

Early Bird Discount

Enjoy 10% early bird discount when you register one (1) month before the course commencement date.

Stock Index Futures

FTS

Newly Accredited
Course Features
  • CPD
    1 Hour
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