STI (Straits Times Index) Futures provide an opportunity for retail investors to profit despite the market direction [whether it is up or down]. Essentially, STI Futures are contracts between buyers and sellers to buy or sell the STI portfolio of 30 stocks at an agreed futures price, to be settled at a specific future date.
The value of each STI Futures contract is $10*the current STI index. Hewever, the buyer /seller needs only put up an initial margin deposit [$1,625 per contract subject to SGX's prevailing initial margin rate] with the broker to secure the contract.
To be continued.
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