Stock market options prices - How do I invest on the JSE? | Business | M&G

Each SSF contract, upon expiry, is physically settled i.

Share price

SSFs appeal to a wide audience — from the sophisticated retail investor to a range of professional traders, asset managers and short-term equity traders. Buyers and sellers of SSFs will normally either be hedgers or speculators.

Hedgers seek to reduce risk by protecting an existing share stock market options prices against possible adverse price movements in the physical market. Hedgers have a real interest in the underlying shares and use futures as a means of preserving their performance.

Speculators use SSFs marekt the hope of making a profit on short-term movements in the futures price. Speculators may have no interest in the underlying other than taking a view on the future direction stock market options prices its price.

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Buyers of physical shares use SSFs to protect against rising prices in the physical market. The long, or purchasing hedge is where futures contracts are bought and later sold when shares are purchased on the physical market. A rise in the physical market price over the stock market options prices of the hedge will be offset by a gain on the futures transaction.

Conversely, a fall in the physical market price over the period of the hedge will be offset by a loss on the futures transaction. Whatever the outcome, the buyer has obtained price security against rising prices over the period opttions the hedge.

An added advantage to the buyer of a futures contract is that it allows stock market options prices buyer to benefit from a favourable market volume indicator trading system having to layout the full capital cost of buying the underlying asset.

For example, one futures contract for an Anglo-American Corporation share currently costs R One futures options prices market stock implies an exposure to Anglo American shares worth R in the physical market.

Any positive moves in the share price during the term of the hedge will clearly have more effect on the futures position by virtue of its gearing effect than otpions the physical position.

Holders of physical shares use futures to protect against falling prices in the physical market. Features and Benefits Local and global market pricees on one platform.

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Description:Gold is one of the most sought-after investments in the metals market. Why? Many look to trade gold as a derivative through futures and options. Ultimately, gold is one of the oldest, most exciting ways to invest in the global stock market.

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