Introduction to Equity Index Products: Course Overview

Learn how Equity Index Products are used to manage risk, seek profit, and more.

This course explores equity index futures, or cash-settled contracts that give market participants the ability to hedge or express opinions in the equity index market. In just a single transaction, traders can use these index-based contracts to manage risk or seek profit based on stock market predictions. 

This comprehensive course will cover the following topics: 

• What’s an Index Future?

• Equity Index Notional Value and Price

• Understanding Equity Index Daily and Final Settlement 

• The Importance of Depth (Volume)

• Who’s Using Equity Index Products?

• What Is Equity Index Basis? 

• Rolling an Equity Position Using Spreads

• Hedging and Risk Management 

• Trading Opportunities in Equity Index Futures

• Equity Intermarket Spreads

• How to Trade Select Sectors

• Communication Services Select Sectors

• Understanding Implied Liquidity in Select Sector Futures