Futures
Futures contracts belong to the group of standardised
exchange derivatives. The basis of these contracts, as with
other forward operations, is an agreement on the exchange of
a given quantity of underlying assets on a predetermined
date.
Futures basically represent a firm agreement between two
parties, imposing on them the duty of buying or selling a
standardised quantity of the underlying asset in question on
a date set in the future for a price agreed to in advance.
Market makers establish the prices of futures contracts
on the basis of the anticipated development of the price of
the underlying asset. A wide variety of instruments may
serve as underlying assets, e.g. stock indexes, stocks,
currencies, mineral raw materials, etc.
The Prague Stock Exchange currently only allows trading of
the following types of futures contracts:
| Type of futures |
Underlying asset |
Commencement of trading |
| Index futures |
PX index |
10/5/2006 |
| Single stock futures |
ČEZ (ISIN CZ0005112300) |
1/29/2007 |
| ERSTE BANK (ISIN AT0000652011) |
1/29/2007 |
The following types of transactions may be concluded with
futures contracts:
Detailed information: