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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-100 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.
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