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Derivatives market products

Derivatives market productsTrade the benchmarks and hedge the future

The segment of an exchange in which derivatives, and in particular futures and options, are traded.

An option is a standardised contract between two parties. The buyer of an option purchases against payment of the option price (premium) the right to buy (call) or sell (put) a defined amount of a certain financial product at an agreed price within a certain period of time or on a specific date in the future.
A future is a standardised contract between two parties. The parties agree to exchange a defined quantity of an underlying asset at an agreed price at a fixed point of time in the future.

Derivatives are contracts that derive their value from the performance of an underlying entity such as an asset, index, or interest rate, and is often simply called the "underlying". Derivatives can be used for a number of purposes, including insuring against price movements (hedging), increasing exposure to price movements for speculation or getting access to otherwise hard-to-trade assets or markets.

Market-on-Close futures

Eurex Exchange

Eurex Market-on-Close futures (Eurex MOC futures) facilitate basis trading, where OTC trading becomes difficult.

They are...

  • cost-efficient as they only need one execution to achieve the exact final futures price thus eliminating slippage risk,
  • easy to trade as they have the benefit of straight-through processing, thereby significantly reducing a trader’s front office workload,
  • easy to access because they can be traded at any size via the order book and the contract size can be adjusted,
  • they come with risk management as, after the transaction of the basis, they are immediately included in the risk management system.
  • they provide transparency because on-exchange trading offers immediate liquity and public price information.