Nasdaq Dubai Equity Futures offer many benefits for investors.
Leverage is a key feature of equity futures. The initial payment (called initial margin) that an investor must make is only between 10% and 30% of the value of the contract. This magnification of the effect of the capital, called leverage, can lead to significant gains (or losses). These gains (or losses) can be much larger than the amount invested.
Trading & Arbitrage
Investors can benefit from the out-performance of one stock price over another through pair trading, by going long on one stock and short on another stock through futures. There are also opportunities for arbitrage when futures and underlying stock prices diverge.
Profit when price falls as well as rises
Selling in advance (shorting) and buying back allows an investor to profit from a stock that is going down in price. Buying and then selling later allows an investor to profit from a stock that is going up.
Allows portfolio managers and investors to hedge their existing market exposure, either increasing or decreasing their exposure to volatility of the underlying equity.
Futures fees can be lower than fees for trading equities.
Futures contracts are always in a standardised form.