Futures For You by Carley Garner
HEDGING WITH MICRO EMINIS
Can the new micro emini stock index futures traded at the Chicago Mercantile Exchange be used to hedge traditional stock portfolio risk?
Absolutely! The futures markets were created as a means of shifting price risk from one person to the other; the micro emini stock index futures are no different. So if you wish to eliminate, or at least mitigate, price risk in any asset class listed on the futures exchange, you can choose to do so by taking an equal and opposite position in the futures market as is held in the cash market ...