With transactions on the futures market investors are able to build high-yield
– high-risk positions, enabling investors to reduce portfolio risk through hedging.
Investors can move large positions relatively with small invested capital as
products on the futures market are always traded using financial leverage.
With futures contracts investors can easily take both long and short positions
on any underlying instrument, hence these are simple tools to profit from both
rising and declining asset prices.
The continuously widening product range offered through the BSE consists of
futures contracts based on the following instruments:
- equity indices
- currencies (foreign exchange)
- interest rates
Futures products on the Exchange are standardized. The Exchange sets the parameters
of futures contracts in order to enhance liquidity and to mirror the needs of
different marker players. Among these parameters expiration dates, contract size
and delivery method are the most important.