Equity index futures have long been a powerful tool for investors and traders aiming to gauge the future direction of stock markets. These financial derivatives, essentially agreements to buy or sell a stock index at a future date for a predetermined price, serve as a bellwether for market sentiment and a mechanism for hedging against risks. This article delves into the predictive nature of equity index futures and how they can provide insight into potential stock market movements.
Understanding Equity Index Futures
At their core, equity index futures represent an investor's...
Equity index futures have long been a powerful tool for investors and traders aiming to gauge the future direction of stock markets. These financial...