Beta Index Futures

Discussion in 'Index Futures' started by Tea, Dec 6, 2003.

  1. Tea

    Tea

    I wonder why no exchange offers a beta index futures contract (that I am aware of).

    It would seem like a perfect contract for momentum funds to hedge with and it would probably lead the other futures indexes attracting speculators. In this lower volatility environment a beta index contract would give more opportunity for intraday trading as high beta implies greater than market average movement.

    Check out a daily or intraday chart of the NY beta index (symbol $nhb or nhb.x ). This is just for NYSE stocks. An exchange could make up their own beta index including Nasdaq stocks. Perhaps an O'Neil beta index?
     
    #1     Dec 6, 2003
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  2. Stardust

    Stardust

    Eurex USA are you listening?
     
    #2     Dec 6, 2003
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  3. sammybea

    sammybea

    Hmm, very interesting idea Tea! I think many firms would benefit from it. I would say suggest the idea to the exchanges.. but of course i have no idea how to. Also, they would probably take credit for your idea :mad: :mad:

    This type of thinking makes me come back to ET despite the "take your college tuition" and use it for a "career" with a certain firm. Not mentioning any names Don.
     
    #3     Dec 6, 2003
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  4. Tea

    Tea

    I sent a couple of exchanges an email to their marketing/sales address. Never heard anything back. If someone at an exchange takes the idea and runs with it - good! Thats why I posted it.
     
    #4     Dec 6, 2003
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  5. ktm

    ktm

    I have heard that the new CFE is considering just such a contract, possibly a mid 04 rollout if the VIX futs/opts do well.
     
    #5     Dec 6, 2003
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  6. kobyco

    kobyco

    Tea,

    Can you please provide more information about the NY beta index (symbol $nhb or nhb.x ) and is there any value in watching it intraday while trading the E-mini S&P?

    Thanks
     
    #6     Dec 7, 2003
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