Are Futures a useful tool for predicting index movements?

Futures are also thought to be a useful tool for predicting index movements because they’re traded 24 hours a day. Unlike the index itself, traders can take a position on futures overnight. This means that futures prices can indicate how the stock index might move when the market opens. How do ASX 200 futures work?

Where can I watch ASX futures?

And now you can watch ASX futures on these assets right on TradingView charts. See futures on ASX SPI 200 Index that tracks the performance of the 200 largest companies listed on the exchange, ASX 3-year Treasury bonds, and more — just type the “ASX24:” prefix in the symbol search field:

What are 'futures'?

Let's demystify 'futures' and establish what they really are. Futures contracts, such as ASX 200 futures, are a type of derivative that is often used for speculation or hedging. When discussing derivatives, we are talking about financial instruments that 'derive' their value from another underlying asset.

Should a fund sell futures in the ASX 200 Index?

For example, a fund heavily exposed to ASX shares might sell futures in the S&P/ASX 200 Index (ASX: XJO) if concerned about a near-term market crash. By selling the futures ( short selling ), the fund would offset losses in its shares with gains from its ASX 200 futures.