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Re: Half Viper Man post# 220720

Saturday, 10/07/2006 8:17:35 PM

Saturday, October 07, 2006 8:17:35 PM

Post# of 359153
I don't trade futures, but I think I understand the basics of how it's done and what you are asking for.
"Index arbitrage" is the trading of index futures.
It's when you buy and sell an index while at the same time buying and selling the stocks within that index.
You need special software to keep up with it.
It's basically a trading strategy that takes advantage of an imbalance in market prices.


Options hedging of some index is basically like buying insurance for a future date giving you the option to buy or sell at that set future date, but limiting your liability as you are not obligated too.

"No you don't, stockhound. Do explain how index arbirtrgue works, and options hedging. Be specific."







there is no "objective truth"--only patterns of probability. "Matter" is seen as an illusion of the senses.
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