How to trade Equity Futures
You can trade Equity Futures in DFM through the following steps:
Open an account with one of the licensed Derivatives brokers. A list of brokers is available on the DFM website.
Place an order with the broker to either buy or sell the equity Futures contract through the available channels (e.g. calling the Broker, internet trading or mobile trading).
The trade will be placed on the Matching Engine and executed if a matching price is available. The trade value will be calculated as (No. of contracts * Contract size * price).
The investor needs to deposit the minimum Initial Margin with the broker before executing any transaction.
The trade will be registered for clearing and settlement with Dubai Clear.
Any profit or loss made due to a change in the market price is settled on a daily basis as Variation Margin.
Once a position is closed, any Initial Margins related to this position, after any profit or loss, will be released.
For investors holding the contract to expiry, the contract will be automatically closed and settled by Dubai Clear with the final settlement price. Investors should educate themselves with product specifications, Equity Futures trading mechanics and understand the risk associated with it before starting Equity Futures trading. Investors can access videos and more on the DFM Equity Futures resource center.