Beta Index Futures

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

  1. 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?
  2. Eurex USA are you listening?
  3. 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.
  4. 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.
  5. 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.
  6. kobyco



    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?