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- GPW introduces six new futures on single stocks listed on the Main Market on 3 December
- Investors can now trade in futures in the stock of: Bank Millennium S.A., Bank Zachodni WBK S.A., Cyfrowy Polsat S.A., CCC S.A., Enea S.A., Energa S.A.
The Warsaw Stock Exchange introduces new futures to the market on 3 December. Futures on the stock of 21 companies has so far been traded on the market in Warsaw. With the new addition, GPW will list 27 single-stock futures.
The futures in the stock of Bank Millennium have a multiplier of 1,000 (one thousand shares per contract); all the other futures have a multiplier of 100 (one hundred shares per contract). The contract value is equal to the contract price times the multiplier.
“The decision to launch the new products comes in response to rising investor interest in single-stock futures. 2015 is a year of record-high volumes of trading in single-stock futures. The volume was 942 thousand in January-November 2015, an increase of more than 62% compared to the annual volume in 2014. Single-stock futures are an attractive product, used by investors in particular in periods of greater volatility of the underlying because futures can provide gains when the underlying stock prices go up or down,” said Grzegorz Zawada, Vice-President of the Management Board of GPW.
Trade in single-stock futures is supported by market makers – local and international financial institutions. With market maker quotes, investors can open and close positions at any time, which largely enhances the safety of trade in single-stock futures. With leverage (where the cash in the account may be lower than the investment value), single-stock futures can provide high returns, but at a higher investment risk level than other financial instruments. Futures can also be used to hedge against the risk of loss on a stock portfolio. Another incentive is the low commission on trade in single-stock futures.
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Warsaw Stock Exchange (GPW) is the biggest securities exchange in Central and Eastern Europe. GPW operates a regulated market of shares and derivative instruments and the alternative stock market NewConnect for growing companies. GPW is developing Catalyst, a market for issuers of corporate and municipal bonds, as well as commodity markets. Since 9 November 2010, GPW is a public company listed on Warsaw Stock Exchange. For more information visit http://www.gpw.pl
