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stock-index futures

stock-index futures

1 7.2
A contract that lets people bet on or protect against changes in a stock market index
  • noun
  • Specialized
translation icon : futuros de índice bursátil
  • Many traders believe that stock-index futures can predict market trends.
  • stock-index futures market
  • margins on stock-index futures
  • stock-index futures contracts

Examples

  • Investors often turn to stock-index futures to hedge against potential losses in the market.

  • Many investors use stock-index futures to hedge their portfolios against market volatility.

  • The value of stock-index futures rose sharply ahead of the economic report.

  • Traders monitor stock-index futures each morning to gauge possible market openings.

  • Investors often trade stock-index futures to hedge their portfolios.

  • Before making any trades, it's essential to analyze the trends in stock-index futures for better decision-making.

  • Many traders speculate on the direction of the market using stock-index futures as a tool to predict future movements.

Synonyms

future
vsstock-index futures
  • Specialized
76 7.9

A contract to buy or sell something later at a fixed price

is tied to a stock index specifically and used for market hedging or speculation
futures
vsstock-index futures
  • Specialized
8 6.3

An agreement to buy or sell something later at a fixed price

are a specific form tied to a market index used to hedge or speculate
futures contract
vsstock-index futures
  • Specialized
3 6.2

An agreement to trade things such as oil or shares at a fixed price on a future date

is based specifically on a stock market measure and used to hedge or speculate

How Risky

stock-index futures
  • Specialized
1 7.2
option
  • Specialized
256 7.4
stock
3.5
government bond
  • Specialized
14 2.7

Surface Forms

Morphology

stock-index + futures

The phrase is compositionally transparent: 'stock-index' is an index of stocks (modifier) and 'futures' are agreements to buy or sell later, so together they denote futures contracts based on a stock index. While detailed financial nuances (hedging, speculating) may be technical, the basic meaning is directly derivable from the constituent words and standard compound-noun structure, so a B1 learner who knows the parts can infer the overall sense.

Etymology

The compound stock-index futures comes from a simple picture: a stock is a share, an index is a list that shows many stock prices, and futures are a promise or ticket to trade at a set price later. So, stock-index futures are like a ticket that locks a price for the whole list of stocks, which is why investors use them to 'bet on' or 'protect against' the market's future moves.