Index Futures are contracts to buy or sell a financial index at a set price today, to be settled at a date in the future. These contracts were originally meant solely for institutional investors but are now open to anyone. These contracts were originally meant solely for institutional investors but are now open to anyone. There are many reasons why people buy index futures, one of which is hedging. Hedge fund managers use futures to hedge against.Portfolio managers use index futures to hedge their equity positions against the risk and volatility of their strategy. You can also use index futures for risk management or for speculative purposes. This blog post will take a closer look at these contracts and how they are used.The contracts were originally created for the purpose of hedging gains and losses that are incurred from owning a particular financial index. These contracts were originally created for companies, but now anyone can buy them as well.
