Definition of «index futures»

Index futures refer to a type of financial contract where people agree to buy or sell a certain index, which is a collection of stocks representing a particular market or industry, at a specific price in the future. It allows investors to speculate on the future direction of the market without actually owning the underlying stocks.

Sentences with «index futures»

  • With stock equity index futures, you are trading on a bunch of equities without needing to trade the individual constituents. (myfinancekits.com)
  • For traders who enjoy volatility, this week's performance in the equity index futures markets has not disappointed. (nadex.com)
  • Funds that use index futures are not normally tax - efficient, because any gains are treated as interest income, which is fully taxable at your marginal rate. (moneysense.ca)
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