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September 1, 2016

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Market Guide

Nasdaq Dubai’s equity futures market enables trading of Single Stock Futures on the shares of some of the UAE’s leading and most liquid companies. This provides a unique opportunity to international and regional investors to profit from market movements and hedge their positions.

The market opened on September 1, 2016, following collaboration between Nasdaq Dubai and leading capital markets participants including SHUAA Capital, which is providing market making services, and Al Ramz Capital, Arqaam Capital, EFG Hermes, Integrated Securities, Mena Corp Financial Services and Mubasher Financial Services as brokers.

In due course Nasdaq Dubai’s market will expand to include other derivatives products, including futures on shares listed on MENA and international markets as well as options.

Launch Partners


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Futures Members

Company Contact  Email Phone 
Al Ramz Capital LLC Mohammad Osama Mohrat Osama.Mohrat@alramz.ae 00971 2 611 8816
Menacorp Financial Services LLC Racha Alkhawaja r.alkhawaja@menacorpfinance.com 00971 4 316 2600
EFG Hermes Brokerage UAE LLC EFG Hermes Call Center EFG-HermesCallCenter@EFG-HERMES.com 00971 600 50 0004
Integrated Securities  LLC Radi Ashour radi@integratedsecurities.ae 00971 2 494 2749 / 9712 494 2666
Arqaam Capital Ltd Vineet Gupta
Shobhit Mehrotra
derivatives@arqaamcapital.com 00971 4 507 1700
Mubasher Financial Services LLC Retail Sales - Mohammed Abu Shairah
Institutional Sales - Mihir Mehta
mohammed.shaireh@mubasher.net
inst.sales@mubasherfs.com
00971 4 32 11167 Extension 246
00971 4 321 1167 Extension 294
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How to trade Single Stock Futures

An investor opens an account for futures trading with an approved Nasdaq Dubai broker. They can then place orders in the same way as for stock trades.

The initial payment for the futures is the initial margin. Profit and losses will be settled on a daily basis (known as variation margin). Investors must keep sufficient cash balance with their broker to meet their initial margin and daily variation margin requirement. If an investor fails to meet their margin requirement within the time specified by the broker, the broker may close the investor’s positions.

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Benefits of Equity Futures

Nasdaq Dubai Single Stock Futures offer many benefits for investors.


Leverage

Leverage is a key feature of equity futures. The initial payment (called initial margin) that an investor must make is only between 10% and 30% of the value of the contract. This magnification of the effect of the capital, called leverage, can lead to significant gains (or losses). These gains (or losses) can be much larger than the amount invested.

Trading & Arbitrage

Investors can benefit from the out-performance of one stock price over another through pair trading, by going long on one stock and short on another stock through futures. There are also opportunities for arbitrage when futures and underlying stock prices diverge.

Profit when price falls as well as rises

Selling in advance (shorting) and buying back allows an investor to profit from a stock that is going down in price. Buying and then selling later allows an investor to profit from a stock that is going up.

Hedging

Allows portfolio managers and investors to hedge their existing market exposure, either increasing or decreasing their exposure to volatility of the underlying equity.

Cost Effective

Futures fees can be lower than fees for trading equities.

Standardisation

Futures contracts are always in a standardised form.

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What are Derivatives?

Watch the video