Your English writing platform
Discover LudwigSuggestions(1)
Exact(6)
Which is bought and which sold depends on whether the index contract is, in relative terms, cheaper or more expensive than the underlying basket of stocks.
The premium is supposed to equal the money earned by investing on a short-term basis what is saved by purchasing the index contract.
The play involves either buying or selling a stock index contract, and then doing the opposite with a large "basket" of 70 to 100 stocks.
The Merc, home of the most popular stock index future, the Standard & Poor's 500 stock index contract, has been under pressure to change the expiration dates of its contracts for months.
Theoretically, the index contract should trade at a slight premium to the actual stock market index because an investor puts down only a small percentage of the value of the contract.
They further argue that since the current indices are far from representing the situation on the ground and are affected by basis risk, an insurance product (e.g. area-yield index contract) based on proper sampling of individual farm yields is far more realistic.
Similar(54)
The manufacturing employment index contracted again in August, although at a slower pace than in past months.
The Restaurant Performance Index contracted, and SurePayroll's November small-business scorecard is down.
In February, demand for such index contracts hit $109.3 billion, up from $52.9 billion in January.
Trading in Treasury bond contracts began at 8 20 A.M. and at 9 30 on New York Stock Exchange composite index contracts.
About $800 million in subprime RMBS securities and $1.2 billion in ABX index contracts were referenced in the CDO.
Write better and faster with AI suggestions while staying true to your unique style.
Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com