Eurex Index Futures: A Liquid International Market

Inventory merchants, buyers, and hedgers have lengthy identified the worth of inventory index futures. Merchants can entry exposures to a complete nation’s fairness markets or a particular sector inside it by numerous inventory index futures benchmarks.

Simply as an investor can entry the broad U.S. market by numerous iterations of the S&P 500 futures, the most important blue chip shares by the Dow Jones futures, or the expertise sector by the Nasdaq 100, market members can entry many European and world fairness benchmarks by Eurex’s household of inventory index futures.

Eurex is the main European derivatives alternate and clearing agency. It provides market liquidity, effectivity, and integrity by offering clients with modern options to seamlessly handle danger. By way of its derivatives alternate and clearing arm, Eurex has pioneered merchandise and infrastructures, providing a broad vary of worldwide benchmark merchandise and that includes open and low-cost digital entry.​

Eurex Indexes

Eurex provides an all-encompassing suite of worldwide, regional, and thematic inventory indexes that allow merchants to diversify their investments or acquire extra publicity to particular areas of their portfolio. With its built-in clearing, cross-margining, and an enormous pool of merchandise and liquidity, Eurex provides a single level of entry right into a sea of liquidity, offering operational and monetary effectivity. Eurex’s benchmark indexes are among the many most liquid exchange-traded derivatives and entice a worldwide community of market members.

These indexes embody the next merchandise and product households.

DAX® futures

The DAX® Inventory Index represents Germany’s largest 40 shares. Eurex provides the DAX® Index Futures (FDAX), a Mini-DAX® (FDXM) that’s one-fifth the dimensions of the massive contract, and a Micro-DAX® (FDXS) that’s one-fifth the dimensions of the Mini.

Along with futures and choices on the DAX® with numerous danger thresholds, Eurex provides futures on its mid-cap index (MDAX). The index tracks the efficiency of the 50 shares that comply with DAX® firms when it comes to dimension or that aren’t eligible for DAX® inclusion. The Mini MDAX futures (FSMX) have a tick worth of €1, so it’s extra aligned with the Micro-DAX® than the Mini.

Retail merchants can hedge publicity to mid-cap firms or make a wager on the mid-cap sector versus massive caps by spreading the FSMX with the FDXS.

Eurex additionally provides futures on its TecDAX Index, which incorporates the 30 largest firms categorized as belonging to the “expertise” sector and that fulfill minimal high quality necessities. The tick worth of the TecDAX futures (FTDX) is €5. Merchants can entry the expertise sector or cut up that sector off (or double up) by buying and selling it versus the Mini or Micro-DAX®. Eurex additionally provides futures on its sustainability index DAX® 50 ESG.


The EURO STOXX 50® is an index of the most important 50 shares within the Eurozone, and the EURO STOXX 50® Futures (FESX) is the Eurozone’s benchmark inventory index.

The EURO STOXX 50® Index Quanto Futures (FESQ) is equivalent to the extremely liquid EURO STOXX 50 Index Futures (FESX), with the exception that it trades in U.S. {dollars}. Each contracts expire at the very same index degree on the third Friday of March, June, September, or December.

Eurex has launched Micro EURO STOXX 50® futures that commerce at 1/20 the gearing of the massive contract (see specs under).

The STOXX® Europe 50 Index Futures (FSTX) is a contract primarily based on an index of the most important 50 firms in Europe. This index included firms primarily based in the UK.

The EURO STOXX 50® ex Financials Index Futures (FEXF) follows the identical protocols because the EURO STOXX 50® however excludes monetary sector shares.

Eurex additionally lists 23 separate sector-specific index futures.

Contract values and worth gradations:

Contract Contract Worth Minimal worth Change
Factors Worth
EURO STOXX 50® Index Futures EUR 10 1 EUR 10
Micro EURO STOXX 50® Index Futures EUR 10 0.5 EUR 5
EURO STOXX 50® Index Quanto Futures USD 10 1 USD 10
EURO STOXX 50® ex Financials Index Futures EUR 10 0.5 EUR 5
STOXX® Europe 50 Index Futures EUR 10 1 EUR 10


FTSE 100 Product Suite

Eurex lists futures on FTSE 100 Index (FTUK). The FTSE 100 is a inventory index of the most important shares listed on the London Inventory Alternate primarily based on market capitalization. It additionally lists futures on a declared dividend FTSE 100 Index (FTDD) and the FTSE 100 Complete Return Index (TTUK).

MSCI Indexes

MSCI indexes are a few of the world’s most generally tracked benchmarks and linked to greater than $16.3 trillion in belongings below administration. The indexes additionally function the idea for over 1,300 Alternate Traded Funds (ETFs). The huge quantity of capital benchmarked towards MSCI indexes and the improved tradability of index-based merchandise by way of ETFs has led to an elevated want for futures and choices. MSCI derivatives assist managers facilitate in and outflows of funds, hedge present fairness publicity, and improve portfolio efficiency.

Eurex is the one alternate providing a complete suite of merchandise consisting of futures and choices on regional and nation indexes. At present, 160 MSCI futures and 32 MSCI choices can be found, masking rising and developed markets in numerous index sorts and completely different currencies (EUR, USD, GBP, and JPY).

Buying and selling Liquid Markets

Though the universe of index futures provided by Eurex is extraordinarily broad, the core markets appropriate to retail merchants embody the Mini and Micro-DAX® suites of merchandise in addition to the Micro-EURO STOXX 50®. Extra subtle merchants can look into the FTSE merchandise and the sector-specific EURO STOXX futures.

“These are all large merchandise,” says Dan Gramza, President of Gramza Capital Administration, who’s a dealer and guide to home and worldwide purchasers. “They really present the chance to diversify publicity exterior of the USA.”

A key to using these merchandise—each when it comes to market tendencies and in relation to their influence on U.S. markets—is figuring out when these merchandise lead or lag the U.S. market, in keeping with Gramza. “The quantity of lead or lag can present a singular alternative for commerce entry. The lead or lag might be outlined when it comes to magnitude of change in addition to time,” Gramza says. “The buying and selling strategies that you’d make the most of for U.S. home indexes can apply to those markets. The explanation for that is, basically, these markets are likely to comply with the identical rhythm which implies indicators which can be getting used on U.S. home indexes will even work on these European merchandise.”

In fact, buying and selling Euro-based monetary markets means you have to perceive the elemental components and financial reviews that can have an effect on these markets.

Anybody buying and selling U.S. monetary markets understands the significance of understanding when main financial reviews are launched. The U.S. employment scenario report, GDP, and Client Worth Index all may cause main disruptions in U.S. primarily based inventory indexes or Treasury futures. That is notably true for short-term day or swing merchants who’re much less capable of stand up to a short-term volatility spike. These merchants ought to in all probability be flat going into these reviews. Even longer-term merchants must know the market expectations of those reviews to handle their trades.

Anybody buying and selling any of those euro-based inventory indexes must familiarize themselves with the German- and European-based indicators that may have an effect on markets. The StoneX calendar is an effective useful resource for vital occasions that might influence DAX® and Euro Stoxx futures or any market you might be buying and selling.

Eurex provides a broad and liquid group of inventory indexes that gives alternatives to create alpha and diversify your buying and selling. Gramza notes that one of the best time to commerce the DAX® and EURO STOXX 50® is often in the course of the first two hours of the Eurex buying and selling session and the final two hours as a result of each durations usually supply the best liquidity and volatility.

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