Spanish stocks listed in futures and options

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The IBEX 35 Index is a market index designed to measure the performance of the top 35 companies listed in Spain. The constituent shares represent different industrial sectors to represent the Spanish economy accurately. The current constituents of this index include well-known large corporations such as Banco Santander, Iberdrola and Telefonica.

The stock market in Spain is of great interest to bankers worldwide who see it as a potential area for financial investment. Investors are drawn towards this market despite fluctuating economic volatility because of its projected growth rate of 4.8% per year over the next decade.

This growth rate puts Spain on par with Brazil and Argentina (the world’s 8th largest economy ). Regarding individual companies, there are 1,095 listed on the Ibex 35 index. Of these companies, 638 are domestic firms while 457 operate internationally; suggesting that although international investment may prove fruitful, domestically-based corporations still provide more significant opportunities for initial returns (and less risk)

How to invest in Spanish stocks

Investors should use futures contracts or trading options on this index to create a diversified portfolio when investing in Spanish stocks. It’ll allow them to enter into various long and short positions with their investments, which will dimension when deciding what price levels they should be targeting.

It can be beneficial for investors concerned about making the wrong decision in the market because they will have another tool to use if their original strategy becomes invalidated, e.g., if a stock falls sharply. Still, the index remains stable. An investor could sell short on individual stocks before returning to purchase them at lower prices or go long on options that protect against more considerable losses until this drop has occurred.

The IBEX 35 Futures contract

The IBEX 35 Futures contract is traded on the Euro MTF Market of Euronext Paris, which settles contracts with physical delivery in Spanish stocks listed in futures and options. Prices are quoted in EUR/100 shares and show indicative notional prices representing the price traders may buy or sell IBEX 35 Index futures contracts. It is also possible to trade options on the index, which are essentially agreements giving investors the right but not the obligation to buy or sell at a pre-determined price for a pre-defined period.

Other futures contracts in Spain

The IBEX 35 Index offers some unique opportunities, currently composed of 381 listed companies that operate across various industries. There are some exciting futures contracts on this index that offer exposure to a wide variety of companies without the need to own any actual stock. These provide excellent tools for those trading on margin or using options to further hedge or speculate on the index.

Currently, there are futures contracts available that offer exposure to Mainland Spain, Mainland Portugal and the Balearic Islands. There is also an IBEX 35 Futures Index, which provides exposure to the future performance of the index as a whole. These can be traded through brokers who specialise in futures trading over the phone or via the internet via online platforms such as iDealing.

Trading short-term futures contracts in Spain

There are a handful of options and futures in the European stock market that investors can trade. In Spain, eight stocks have rights to be traded in the short term futures contracts, while four companies have been given rights to offer shares for trading in the long term contracts.

The 8 companies granted right for trading under shorter-term futures contracts are: Abengoa SA, Acciona SA , Banco Santander SA, Iberdrola SA, Repsol YPF SA, Telefonica SA , Acerinox Group and Cellnex Telecom. The four companies given right for trading under long-term future contracts are ArcelorMittal, Endesa, IAG and OHL.

Finally

Beginner traders interested in investing in the stock market in spain are advised to use a reputable online broker from Saxo Bank and try out a demo account before investing real money.

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