S&P 500 Index Hedger
hedger in the S&P 500 Index market is an individual who uses the futures market to offset price risk when intending to
sell or buy the actual S&P 500 Index. Hedging is possible because the S&P 500 Index cash prices and S&P 500 Index
futures prices tend to move in the same direction. However, the difference between the cash price and the futures price may
narrow or widen. The change in the difference between the cash price and the futures price is called basis risk. Because
of the changing basis no hedge can be perfect.
Where can you hedge the S&P 500 Index? The S&P 500 Index can
be hedged on the Chicago Mercantile Exchange (CME). The CME offers a competitive and transparent market place to
engage in efficient hedging strategies. If you are interested in hedging S&P 500 Index please contact
us. One of our experienced
S&P 500 Index traders will be happy to give you a call to discuss hedging strategies with you.
Hedge your Portfolio Using Stock Index Futures
Click on the link above to download a very informative .pdf brochure entitled "Hedge your Portfolio using Stock
Index Futures.” It was published by the Chicago Mercantile Exchange. This is a must read guide for any novice or advanced
trader considering a hedge in the index market using exchange traded S&P 500 Index futures and options.