Definitions for "Index futures"
Index futures are based on the projected movement of a share price index, such as the FTSE 100.
A futures contract on a financial futures market, such as the London International Financial Futures and Options Exchange, which offers facilities for trading in futures and options on the market Index such as FT-SE 100 and the FT-SE Eurotrack 100.
Contracts for future delivery based on the development of a share or price index within a specified period. See also Financial futures; share index. Français: Indice sur les contrats à terme Español: Indice de futuros
Are index derivatives, which allow people to alter their risk exposure to an index (this is called hedging) and to implement forecasts about index movements (this is called speculation). Hedging using index derivatives has become a central part of risk management in the modern economy. These applications are now a multi-trillion dollar industry worldwide, and they are critically linked up to market indexes.