The Euro Stox 50 futures market tracks the Euro Stox 50 index market, which is a market index consisting of 50 European Blue Chip Companies. The Index was introduced in 1998, and the futures contract came

 

Euro Stoxx 50 Futures Contract Specifications

Symbol:  FESX

Point Size: €10

Minimum Price Fluctuation: €10

Trading Hours: 7: 50 am -8:00 pm CET

Expiration Months: March, June, September, and December

Rollover takes place on the third friday of the contract month

Advantages of FESX Futures

The same advantages that apply to other futures contracts, also apply to the FESX futures market. Here are some advantages of futures:

Low Costs – Since the FESX futures offer great leverage, the trading costs relative to the market exposure you get is are tiny

Long History – The Stoxx 50 index which was created in 1998 now has more than 20 years of history. In combination with the fact that the Stoxx 50 is a market index consisting of blue chip stocks, the FESX futures become an attrative gateway to the Stoxx 50 market.

Hang Seng

Hang Seng

The Stoxx 50 Index Market

The Stoxx 50 Index market consists of the fifty largest and most liquid stocks in Europe. The goal of the Stoxx 50 index was “to provide a blue-chip representation of Supersector leaders in the Eurozone”. The Index is reviewed in September every year

Composition of the Stoxx 50 Index

 

Reasons to Trade Euro Stoxx 50 Futures

The Stoxx 50 is an index consists of blue-chip stocks which are some of the most stable and liquid companies in Europe. Therefore the Stoxx 50 offers exposure to some of the best and most stable companies in Europe, which makes the Stoxx 50 a safe investment.

Liquidity

The Euro Stoxx 50 futures contract (FESX)  that trades on Eurex are very liquid, which decreases slippage, in turn leaving more of the profit for the trader.

 

High Leverage

With futures, you have inbuilt leverage, which means that you can profit greatly from even small moves in the market.

Low Costs

Since futures work with leverage, the cost of commissions and fees relative to the market exposure becomes tiny

You May Go Short

With futures contracts, you can sell short and profit from downwards movements in the market.

You can read more about the benefits of trading futures in our post on the topic.

Trading Strategies

Every market has its own special characteristics, but there are some traits that can be observed in many markets. One such logic that is prevalent among market indexes, is mean reversion.

Mean reversion is the tendency of a market to revert to its mean, once it has made exaggerated moves in one direction. So, of the market has moved excessively to the downside, we may soon expect it to turn around. The mean reverting tendency of index markets are best used to go long by catching a falling market, due to the long term rising trend of the equity markets.

Where to Find Price Data

For traders who just want to view the chart of the Hang Seng Futures market, they can do so here.

Traders who wish to import data into their trading platform will have to sign up for an external data feed. E-signal is one data provider for the Hang Seng Futures markets.

Where to Trade Euro Stoxx 50 Futures

Not all brokers offer Asian or even European markets.

However, Interactive Brokers (IB) does, and Euro Stoxx 50 futures can be traded through them. IB is known for its low commissions and is a reliable broker in the trading industry.