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We all
would like to invest our savings in places which give us the highest return. T-bills
and equities are the first classical investment tools that you might think of.
With the introduction of the ISE-30 Index Future contract, investors will have
the chance to invest on the direction of the whole economy. If they think that
there will be good progress at the pace of the economy, they will buy the index;
otherwise they will short the index.
Investors
will also be able to use the leverage effect of the equity index contract. By
depositing only 10% of the contract value, they will have a much bigger position.
On the
other hand, fund managers might also use this contract to hedge their spot
equity portfolio against the price declines by going short at the futures
market. |