Mini futures

Mini Futures are securities that allow an investor to gain returns in a rising market (Mini Long) or declining market (Mini Short) of a certain share or other underlying asset. In this way, Mini Futures are similar to warrants and options. Just like with warrants, any return is paid out in cash.

A Mini Future consists of two elements: the capital invested by the investor and the loan offered by the issuer. Mini Futures are typically open-end securities which means that they do not have a predefined expiration date and hence have no time value. This makes the valuation of the Mini Future relatively simple. The value of a Mini Future is based on the difference between the capital invested and the loan offered by the issuer, adjusted with a multiplier (=the number of Mini Futures needed to buy the underlying asset).

Mini Futures

 

While the presentation has been prepared on the basis of the best information available, Nasdaq accepts no liability for decisions taken by any party, based on this information.

Investing in securities involves risks. Securities can increase and decrease in value and there is no guarantee that you will get back your investment. Past performance is no guarantee of future returns. The contents of this document are subject to the disclaimer and copyright terms set out at <http://www.nasdaqomx.com/disclaimerandcopyright>.