Saturday, November 19, 2011

When is the first year futures trading available for US stocks?

When is the first year futures trading available for US stocks?


Does this have any change to stock market's behavior since then?|||google single stock futures - they have been around for about 3-4 years - they aren't very liquid though - not many people trade them.





does it affect that stocks behavior? no. options on individual stocks affect the behavior a little more. derivatives on individual stocks during "normal" markets tend to dampen volatility because the speculators use those derivatives instead of using the stock. options and single stock futures market makers will offset the speculators position in derivatives by either buying or shorting the underlying stock.





when the market is in "crisis" however, these derivatives can exacerbate the crisis because the market makers experience a rush of orders, and like-wise must offset that crush by either buying or shorting the underlying - usually pushing the stock further in the direction of the "crisis" or "failure"

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