New opportunities for portfolio managers
Broadening the potentialities of equity portfolio managers by means of single stock futures:
- Reducing the risk of the equity portfolio
- The possibility of short sales
- Using "the leverage effect" which is about 1,5:1,7 on average
- Reducing transaction costs when working with shares:
- Lower commission charges (e.g., the lack of depositary charges)
- Free "leverage" (the participants are charged only with the opening and closing of a position, whereas position trading is free)
- Creating short-term "synthetic" bonds
- The possibility of strategy construction for futures and options on futures.