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How to short the s&p?
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7th Nov 2009 by Joseph Pousada
The S&P has various indices of which the S & P 500 Index is one of the most well known. Typically if an investor or money manager wanted to short a major index it would use a futures contract. For the S & P 500 Index the futures contract would trade on the Chicago Mercantile Exchange. The Chicago Mercantile Exchange does not operate on a specialist system like the New York Stock Exchange but instead trading is done in via open outcry in the pit. The futures contracts are not subject to the restrictions that are present for shorting stocks. In addition, with future contracts of indices there is no delivery of the underlying index securities but instead, on the expiration date of the contract there is a cash settlement.
The S&P has various indices of which the S & P 500 Index is one of the most well known. Typically if an investor or money manager wanted to short a major index it would use a futures contract. For the S & P 500 Index the futures contract would trade on the Chicago Mercantile Exchange. The Chicago Mercantile Exchange does not operate on a specialist system like the New York Stock Exchange but instead trading is done in via open outcry in the pit. The futures contracts are not subject to the restrictions that are present for shorting stocks. In addition, with future contracts of indices there is no delivery of the underlying index securities but instead, on the expiration date of the contract there is a cash settlement.
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4th Nov 2009 In Investing
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Subjects: s&p short,