Index Investing: From Theory to Practice · Dr MAI Huu Minh, TRAN Phan Bao Ngoc & HUYNH Nguyen Quoc BuuChapter 19 of 37 · Module 5: Index products
CHAPTER 19
Index Derivatives
Futures, options, swaps and volatility products
Opening question
“My portfolio is up 40% this year. How can I protect it without selling everything — and paying tax and trading costs on the way out?”
In this chapter
- The family of index derivatives: listed and over-the-counter
- How index futures are specified, priced and used for hedging
- What drives index option prices, and the three option strategies every index investor should know
- Total return swaps, synthetic exposure and volatility products (VIX)
- A 10-point checklist before buying any index derivative
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This chapter is in the full book
Chapter 1 is free to read online. The full text of chapter 19 — with its tables, figures, worked examples and practice lab — is available in the complete edition of Index Investing: From Theory to Practice (Volume 1, NXW Investment Library).
Read Chapter 1 freeGet the full book — contact@nxw.vnSections of this chapter
19.1 The family of index derivatives
19.2 Why derivatives on indexes?
19.3 Index futures
19.4 Using index futures
19.5 Index options
19.6 Option strategies for index investors
19.7 Swaps and synthetic exposure
19.8 Volatility as an asset: VIX futures and options
19.9 Risks, regulation and a checklist