If you were asked to picture trading the U.S. stock market, what comes to mind? You may think of trading shares of companies like Apple, ExxonMobil or Disney.  But what if there was another way to express your views and gain broad-based exposure to U.S. equities - without trading each individual stock? One alternative is equity index futures and options. With a single transaction, investors can use these index-based contracts to manage risk or seek profits based on whether they think the stock market will rise or fall. 

Learn the basics of these contracts, including what they are, how they’re built and how many ways you can use them.Equity index futures and options are important tools portfolio managers use to maximize capital efficiencies, minimize portfolio risks, and generate portable alpha. This course covers topics such as cash equitization, portable alpha, beta replication, and transition management.

Course Curriculum

  • 1

    Introduction to Equity Index Futures

    • What is an Index Future

    • Notional Value and Price

    • Daily and Final Settlement

    • Importance of Volume

    • Users of Equity Index Products

    • Equity Index - Basis

    • Rolling Equity Index Futures using Spreads

    • Hedging and Risk Management

    • Trading Opportunities in Equity Index Futures

    • Equity Index - Intermarket Spreads

    • Trading the Select Sectors

    • Understanding Implied Liquidity
  • 2

    Managing Portfolio using Equity Index Futures and Options

    • Alpha-Beta and Portable Alpha

    • Cash Equitization - Cash Drag in the Cross Hairs

    • Transition Management using Stock Index Futures

    • Beta Replication and Smart Beta
  • 3

    Quiz - Equity Index Futures

    • Quiz - Equity Index Futures
  • 4

    Important Topics

    • Equity Index - Calendar Spreads

About Trading Institute

Subject Matter Expert

Trading Institute

Trading Institute is a professional training institute set up with an objective to bridge the skills gap between academia and theindustry by offering industry relevant training and certifications andempowering young and dynamic individuals with skills required topursue careers in the areas of capital markets and financialservices. Our mission is to equip aspiring financial markets learnerswith the right education and training they need to pursue a careerwith leading financial institutions or become an independent or aprofessional trader and a sound investor.