The NASDAQ OMX options and futures exchange is the third largest derivatives exchange in Europe and trades nearly 600,000 contracts per day. We have conducted trading in options and futures since 1985, and were the first in the world to start an electronic options market with integrated clearing. Since its inception, NASDAQ OMX has gone from strength to strength and today offers a fully integrated Nordic derivatives exchange, trading in Swedish, Danish, Finnish and Norwegian options and futures.
Martin Granlund – Equity derivatives expert
What are derivatives?
An equity derivative is a contract between two parties, of whom the value is dependent on the value of an underlying stock or an index. In other words, it derives its value from a stock or an index. The contract specifies conditions, such as expiration date and exercise price, under which payments or payoffs are to be made between the parties, and where applicable, deliveries of the underlying asset.
What are the advantages with standardized exchange-traded derivatives?
Standardization means that you as an investor always know exactly what rights and obligations that are attached to the contract. Standardization makes it easier to value and to trade the contract and is therefore a condition for a well functioning and liquid derivatives market. NASDAQ OMX is a Central Counter Party clearer for the exchange traded contracts which contributes to a more efficient market since all participants’ can act without taking the counterparty risk in to consideration.
Why trade equity derivatives?
Derivatives are generally used as an instrument to both reduce risk -hedging, and to bear extra risk -speculating. Some investors who trade in equity derivatives seek to transfer certain risks associated with the underlying security to another party. Some trade stock options because of the leverage.
Leverage means that the percentage return on your investment is likely to be much higher compared to a normal share investment.
NASDAQ OMX Derivatives Markets offers exchange-traded forwards, futures and options on:
As well as options and futures on the following indexes:
OMXS30 index (the 30 most traded Swedish stocks)
OMXC20 index (the 20 most traded Danish stocks)
VINX30 index (the 30 most traded Nordic stocks)
OMXO20 Index (the 20 most traded Norwegian Stocks)
NASDAQ OMX Derivatives Markets also offers futures on the:
OMXSB (Stockholm Benchmark index)
In addition to the above NASDAQ OMX Derivatives Markets offers Tailor Made Clearing (TMC) and an On-Request Market.
Read more about NASDAQ OMX Derivatives Markets here >>