Where to get fair value of stock index futures?

Discussion in 'Index Futures' started by helpme_please, Jul 30, 2017.

  1. What are some websites that provide the fair value of stock index futures? Preferably, fair value of European and Asian stock index futures are also provided besides the American ones.
     
  2. cvds16

    cvds16

    do you have any clue what you are going to do with that kind of information ? ? ?
     
  3. JackRab

    JackRab

    Ain't no such thing....

    Interest rate component is roughly the same for everyone... risk free rate...

    But, 'fair value' depends mainly on whatever dividends are expected... so who's fair value do you want? Mine or his or hers?
     
  4. Knowing the fair value is useful so that one does not buy or sell too far away from fair value.
     
  5. Don't quite understand your question. Dividends depends on the stocks in the stock index. It should be estimated from declared dividends and historical dividends. Cannot be 100% accurate, of course.
     
  6. JackRab

    JackRab

    Well.. why don't you just calculate the fair value then?
     
  7. Websites provide convenience and higher productivity. All financial information for stocks are public. Is it productive for an investor to gather all the financial information himself?
     
  8. algofy

    algofy

    What the hell? Lol
     
    lawrence-lugar likes this.
  9. JackRab

    JackRab

    Well you should, because to rely on others is a road to ruin...

    Firstly, by relying on others you copy any mistakes... which there are plenty of...

    Secondly, even if the dividends you would be using are more or less known (which they are not) then there is the discount... which depends on how much tax is paid on dividends, and that isn't fixed either.

    Third, financing, I said earlier that one should use the risk free rate... but technically it should be depending on individual financing rates... which are again different for everyone. And of course short stock rates.... different again....

    So all together, if you want to get the 'fair value', if you ask 5 different people, you get 5 different answers... hence my statement "no such thing".

    And then there is liquidity issues... when you look at the futures price compared to the spot/'fair value'.. the differences will always change... mostly liquid futures lead the spot... but sometimes they don't...
     
    helpme_please likes this.
  10. Thanks for your insightful answer. I understand better now.
     
    #10     Jul 30, 2017