Equity Futures: An Exciting New Market

Nasdaq Dubai’s equity futures market has attracted substantial trading since its launch with UAE single stock contracts. The market has expanded by adding UAE equity index futures and will soon enter a new phase of growth by adding Saudi Arabian single stock futures.

What are Equity Futures?

Marwan Shurrab
Al Ramz Capital
Introduction of Equity Futures Market

Ayman Hamed
Integrated Securities
What are DFM Index Futures?

Hassan Alserkal
DFM
How can investors use ADI Futures

Henri Bergstrom
ADX
Hedging in Equity Futures

Hatim Al Atabani
Brokerage House Securities
Market Making on Equity Futures

Magdi Shannon
Shuaa Capital
Shorting in Equity Futures

Marwan Shurrab
Al Ramz Capital
Initial Margin in Equity Futures

Ma'an Al Bostami
Brokerage House Securities
Trading Opportunities in Equity Futures

Samir Zedan
Integrated Securities
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Benefits of Equity Futures

Nasdaq Dubai Equity 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.

Potential

Movements of a share price or an index creates significant opportunities for investors in futures, whether they rise or fall.

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How to trade Equity 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.

Futures Members

Broker Contact Email Phone
Menacorp Financial Services Ahmed Waheed a.waheed@menacorpfinance.com +971 50 376 8647
Al Safwa Mubasher Call Centre uae@mubashertrade.com +971 800 567 000
Al Ramz Capital Osama Mohrat osama.Mohrat@alramz.ae +971 2 611 8816
Arqaam Capital Vineet Gupta derivatives@arqaamcapital.com +971 4 507 1854
Brokerage House Securities Ma’an Al Bostami maan@bhsuae.ae +971 2 207 7633
EFG Hermes UAE Khaled Mohamed kmohamed@efg-hermes.com
EFG-HermesCallCenter@EFG-HERMES.com
+971 4 3069406
+971 600 50 0004
Naeem Shares & Bonds Abdel-Rahman Kharma abdelrahman.kharma@naeemholding.com +971 4 3824709
Integrated Securities Samir Zedan
Azza Swaidan
samir@integratedsecurities.ae
azza@integratedsecurities.ae
+971 2 494 2606
+971 2 494 2603
SICO UAE Zaher Al Affouri Brokerage@sicouae.com +971 2 6590112

Partners


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What are Derivatives?

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