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INDICES
A stock market index future is a cash-settled futures contract on the value of a particular
stock market index. Index futures have been wildly successful with investors, and the list of actively traded contracts grows
bigger every year. Futures and options on stock indexes offer users an efficient, inexpensive way to capitalize on this increasingly
important and timely market segment.
Investors can use stock index futures contracts to hedge against stock index risk,
or stock index futures can be used to speculate and, by incurring a risk, attempt to profit from rising or falling stock indexs.
Whether you are a speculator or a hedger, this section on stock index futures contains a wealth of valuable information. Before
trading stock index futures and options you should contact an experienced broker to discuss market risk and opportunities.
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