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Besides serving as a barometer of the economy/market, the index also has other applications in finance. Various products have been designed based on the indices such as the index derivatives, index funds, and the exchange traded funds. We here restrict our discussion to only index derivatives. How does an index derivative earn popularity?
Besides serving as a barometer of the economy/market, the index also has other applications in finance. Various products have been designed based on the indices such as the index derivatives, index funds, and the exchange traded funds. We here restrict our discussion to only index derivatives. How does an index derivative earn popularity?
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Remember: Index derivatives provide a way to speculate on the entire market without owning individual stocks, and they can be used for both hedging and speculative purposes.
Updated On: Apr 4, 2026
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