Indices Futures Stocks
is a futures contract on stock or financial index. PT Didi Max Futures offers futures contracts on major Asian Stock indexes such as Kospi, Hang Seng and Nikkei 225; as well as US Stock indices such as NASDAQ, Dow Jones and S & P 500.
The stock index consists of shares of several selected companies and therefore can not be traded directly (no ownership of stock index certificates). One way investors can exchange stock indices directly is through futures contracts.
- Smaller investment capital because it does not need to buy mutual funds or various types of shares.
- Ability to sell first (short sell).
- High liquidity, with speed of transaction execution in seconds.
- Can be used as a means of diversifying portfolio and hedging facilities.
- Volatility is lower and price movements are more stable than individual stocks.
- Online Transactions through Didimax Trader4 platform.
Illustration of Calculation
You assume the Dow Jones will increase, and buy 1 lot of Dow Index (DJC05) at 11,000 price and successfully liquidate it at 11,200 price.
Profit / Loss Calculation
= (Selling price - purchase price) x Value per point x Amount of lot
= (11,200 - 11,000) x $ 5 x 1 = $ 1,000 *
* This illustration does not include the commission, otherwise it can happen if the customer takes a position that is not in line with the price movement.