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OMXS30 Swedish Futures index Explained – Trading Strategies | Symbols and Contract Specifications

Last Updated on 10 February, 2024 by Trading System

OMXS30 is a Swedish stock futures index that is widely used for trading in the Nordic region. It is a free-float index that takes into account the 30 most traded and liquid stocks from the Stockholm Stock Exchange. This index is popular among traders because it provides a good representation of the performance of the Swedish stock market. It is an important benchmark for Swedish investors, as it gives them a snapshot of the performance of the major Swedish companies. OMXS30 is a futures contract that is traded on the Nasdaq Nordic Exchange, and investors can use the index to trade on leverage. This makes it a great instrument for speculation and hedging. Additionally, it is also used as a benchmark for portfolio performance, making it an important tool for portfolio managers.

The OMXS30 futures market contract tracks the OMX Stockholm 30 index (OMXS30) and consists of the 30 largest stocks in Sweden.

Futures Contract (OMXS30) Specifications

Symbol:  OMXS30

Point Size: kr100

Minimum Price Fluctuation: kr12.5

Trading Hours:

09:00-17:30 (CEST)

Expiration Months: March, June, September, and December

Rollover takes place on the third Friday of the expiration month.

OMXS30 Swedish Futures index Explained – Trading Strategies | Symbols and Contract Specifications

Seasonlity of OMXS30 Swedish Futures 

The OMXS30 Swedish Futures index is an index of the 30 most liquid and large Swedish companies on the Stockholm Stock Exchange. The index is used to measure the performance of the Swedish stock market, and it is a popular investment choice for investors looking to gain exposure to the Swedish economy.

Seasonality plays an important role in the performance of the OMXS30 Swedish Futures index. Historically, the index has experienced increased activity during certain months of the year.

January: The beginning of the year is typically a strong month for the OMXS30 Swedish Futures index, as investors look to take advantage of the tax benefits associated with investing in the index.

February: February is usually a quiet month for the index, as investors take a wait-and-see approach to the markets.

March: March is typically a strong month for the index, as investors look to take advantage of the beginning of the Swedish fiscal year.

April: April is usually a quiet month for the index, as investors look to assess the performance of the index and make any adjustments necessary.

May: May is usually a strong month for the index, as investors take advantage of the end of the Swedish fiscal year.

June: June is usually a quiet month for the index, as investors look to take a wait-and-see approach to the markets.

July: July is typically a strong month for the index, as investors look to take advantage of the beginning of the Swedish summer holiday season.

August: August is usually a quiet month for the index, as investors look to assess the performance of the index and make any adjustments necessary.

September: September is typically a strong month for the index, as investors take advantage of the end of the Swedish summer holiday season.

October: October is usually a quiet month for the index, as investors look to take a wait-and-see approach to the markets.

November: November is typically a strong month for the index, as investors look to take advantage of the beginning of the Swedish holiday shopping season.

December: December is usually a quiet month for the index, as investors look to assess the performance of the index and make any adjustments necessary.

Advantages of OMXS30 Futures

The OMXS30 futures contract comes with the same advantages as other futures markets. Futures are useful for traders or investors who want to hedge against price movements, but also for those who wish to alter their portfolio allocation through leverage. Here we have listed some more advantages of trading the OMXS30 futures contract:

Low Costs – By trading the OMXS30 futures contract, you get significant market exposure through leverage, at a low cost.

Long History – The OMXS30 futures market has a long history and is one of the most traded futures contracts of the Nordic indexes.

Currency Risk – OMXS30 futures are denoted in SEK, which means that foreign investors get to spread their currency risks by having a position in the OMXS30 futures.

OMX Stockholm Market Index (OMXS30)

OMXS30 is a market index based on the 30 largest stocks in Sweden. The OMXS30 is a so-called market capitalization index, which means that the weight that is given to each stock is proportionate to the size of the stock.

The OMXS30 is rearranged in January and July each year. For there not to be an excessive turnaround in the index, a stock that meets the market capitalization criterion must also belong to the 15 most traded stocks to be included in the OMXS30.  The same rule applies to shares that do not meet the market capitalization criterion. For a stock to be excluded from the OMXS30, it must have a trading volume that is lower than the 45 most traded stocks in the exchange.

Reasons to Trade OMXS30 Futures

The OMxS30 index market is the most popular index market when compared to its Nordic competitor. Here are some more general advantages that apply to futures markets.

Leverage

Leverage is one of the main benefits of futures and enables investors and traders to make gains from the smallest of price movements. Typically, the initial margin is set to around 3-12% of the total contract value.

Cost Effective

With their large size relative to market exposure, futures contracts are cost-effective options for traders and investors.

You May Go Short

Futures enable investors and traders to switch between long and short positions effortlessly. This is not always the case with other securities. For example, in some countries, short sellers of stocks always need to place their orders one tick above the last traded price. That is not the case with futures.

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

Trading Strategies

Trading strategies come in many forms and shapes. However, there is market behavior that applies to many markets.

One such market logic is mean reversion. Mean reversion is the tendency of a market to revert to its mean when it has moved excessively in one direction. Traders may use this tendency to go long when the market is oversold and go short when it is overbought. However, for index markets like the OMXS30, we recommend focussing on going long. The long term positive bias of index markets tends to favor long signals more than short signals.

if you are interested in edges and strategies for the OMX Market, have a look at our collection of edges and strategies for a wide range of markets!

The OMXS30 Swedish Futures Trading Strategies are strategies that are used by traders to make profits from the Swedish stock market. These strategies involve taking advantage of the price movements of the OMXS30 index, which is the main stock index in Sweden. The strategies are designed to capitalize on the shortterm price movements of the index, while also taking into account the longerterm trends of the market. Traders typically use a combination of technical and fundamental analysis to identify buying and selling opportunities in the index. These strategies can be used by both experienced and novice traders alike, and they can be adapted to suit different trading styles and risk tolerances.

1. Arbitrage: Arbitrage is a popular trading strategy in which traders look for discrepancies in the price of a security between two different markets. In the case of the OMXS30 Swedish Futures, traders may look for discrepancies between the futures market and the underlying equity index.

2. Momentum Trading: Momentum trading is a strategy that attempts to capitalize on the continuance of existing trends. With the OMXS30, traders may look to enter long positions when the index is trending up, or vice versa.

3. Swing Trading: Swing trading is a strategy that attempts to capitalize on short-term price movements. Traders may look for entry points in the OMXS30 when the index is trading in a range, and look to profit from quick price movements in either direction.

4. Trend Following: Trend following is a strategy that attempts to capitalize on longer-term trends. By monitoring the direction of the OMXS30 over a period of time, traders may look for entry and exit points in the direction of the trend.

Where to Find Price Data

You can find the chart of the OMXs30 index here.

If you wish to load data into your trading platform, you will have to choose an external data provider. E-signal offers data for the OMXS30 futures market.

OMXS30 Swedish Futures index Explained – Trading Strategies | Symbols and Contract Specifications

Where to Trade OMXS30 Futures

Not all brokers offer European markets.

However, with Interactive Brokers (IB) you can trade markets worldwide, including European markets.

Here is our archive with articles about other tradeable futures markets.

Interesting statistics about OMXS30 Futures

1. The OMXS30 is a Swedish stock index that includes the 30 largest companies listed on the Stockholm stock exchange.
2. The OMXS30 index has a total market capitalization of over $500 billion.
3. The OMXS30 index is comprised of companies from a wide range of industries, including banking, telecommunications, healthcare, and energy.
4. The OMXS30 has increased by over 16% in the past year.
5. The OMXS30 has outperformed the S&P 500 and Dow Jones Industrial Average over the past five years.
6. The OMXS30 has a dividend yield of approximately 2.4%.
7. The OMXS30 has a beta of 0.81, indicating that it is less volatile than the overall market.
8. Over the past three years, the OMXS30 has had an annual return of 13.6%.
9. The OMXS30 is heavily weighted towards the financial sector, which accounts for over 45% of the index.
10. The largest company in the OMXS30 is Ericsson, with a market capitalization of over $50 billion.
11. The OMXS30 is traded on the Nasdaq OMX Stockholm exchange.
12. The OMXS30 futures contract has a contract size of 50 times the index, with a tick size of 0.01%.

 

FAQ

What are the Specifications of the OMXS30 Futures Contract?

The OMXS30 futures contract is represented by the symbol OMXS30. It has a point size of kr100, a minimum price fluctuation of kr12.5, and trading hours from 09:00 to 17:30 (CEST). Expiration occurs in March, June, September, and December, with rollover on the third Friday of the expiration month.

How Does Seasonality Affect OMXS30 Swedish Futures?

Seasonality plays a role in OMXS30’s performance. Historically, certain months exhibit increased activity. For instance, January tends to be strong due to tax benefits, while February is quieter. March is strong as it marks the beginning of the Swedish fiscal year.

Where Can I Trade OMXS30 Futures?

Not all brokers offer European markets, but Interactive Brokers (IB) allows trading in European markets, including OMXS30 futures. Ensure to choose a broker that provides access to the desired markets. Price data for OMXS30 futures can be found on charts available on various financial platforms. If you wish to load data into your trading platform, consider external data providers like E-signal.

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