Derivatives: What are on offer?

A Fin24.com user asks:

The JSE responds: The JSE offers a wide variety of derivatives contracts through the equity derivatives trading platform, currency derivatives trading platform and the commodity derivatives trading platform.

The equity derivatives trading platform offers investors equity derivatives in the form of single stock futures (SSFs) and single stock options. SSFs and single stock options are derivatives whose value is derived from the value of an equity or share that is already listed on an exchange.

The currency derivatives trading platform offers investors currency futures and currency options. Currency derivatives obtain their value from the rate of exchange between one unit of foreign currency and the rand.

Currently, there are rand/euro, rand/dollar, rand/pound, rand/Australian dollar and rand/yen currency derivatives contracts available.

The commodity derivatives trading platform offers investors futures and options on agricultural products such as maize, wheat, sunflower seeds and soya beans. The JSE recently expanded its commodity product range to include a range of metal commodities that will be cash settled off a foreign-referenced underlying market. This includes gold, platinum and sweet crude oil futures.

If you would like to ask specific questions about trading derivatives, contact the JSE's derivatives trading team on 011 520 7475, or email derivativestrading@jse.co.za.

- Fin24.com