Hi guys, i just finished watching another chapter of an HK TV drama series, all about the stock market. Well something interesting came across to me during the film. Billionaires were actually making money from the rise/fall of the index. Can someone please explain how this works? Cheers
RichKid
4th-November-2004, 10:01 PM
Not sure what you saw but you can bet on which way the index is going to go, like a stock price. Normally you gain or lose a certain some of money depending on how many points an index moves in a given period.
You can do that in Australia too for various indices- gold, currencies, futures, share prices etc just find someone who offers a product. Macquarie Bank for example- see their website.
Is this what you had in mind?
Lucstar
4th-November-2004, 10:33 PM
Yes thanks, do you know the name of that sort of practice?
wayneL
4th-November-2004, 10:38 PM
It's done via Index futures.
The australian contract is called the SPI (Share Price Index) and tracks the ASX S&P 200.
