The futures market (part 5)

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The Futures market (part5)

The Australian stock market is made up of over 2000 stocks offering traders opportunities across a number of sectors in the futures market.  The most popular are the resources and financial sectors.

S&P/ASX 200 Resources Index

ASX offers trading opportunities to trade many of the global leading resource companies and exploration companies developing energy and mineral deposits in Australia.The S&P/ASX 200 Resources Index (XJR) consists of companies from the S&P/ASX 200 index that are classified as belonging to the energy sector or the metals and mining industry. (Source

S&P/ASX 200 Financials-x-A-REITs Index

The Australian market has a large financial sector.  Pools of money are generated through the contributions made through superannuation which makes Australia as one of the largest pension fund pools in the world. This has created a favourable environment for banks and asset management, financial planning and insurance companies.The S&P/ASX 200 Financials-x-A-REITs Index (XXJ) consists of 200 companies that are involved in banking, mortgage finance, consumer finance, specialised finance, investment banking and brokerage, asset management and custody, corporate lending, insurance and financial investment. The index comprises all the companies from the S&P/ASX 200 index that are in the financial sector with the exception of those companies that are classified as Australian Real Estate Investment Trusts (A-REITs). (Source

Sector Futures

For Futures traders, opportunities exist to trade the various sector futures contracts. The ASX SPI 200™ Futures provide great opportunity to hedge and protect people’s portfolio.Other sectors in futures (resources and financial) offer additional opportunities to hedge against detrimental movements in the market where resources and financial stocks are involved.

Australian Futures market is considered to be efficient as it is transparent and liquid.