SiMSCI - Singapore Stock Exchange Index Futures

With stock index futures, investors can trade the world's stock market without buying a single stock.

How?

By simply buying a Stock Index Futures Contract instead.

What is Stock Index Futures

A stock index is a performance benchmark of a stock market. It measures the performance of a selected basket of stocks which represents the performance of the whole stock market.

Morgan Stanley Singapore Free Index

For instance, the MSCI (Morgan Stanley Capital International) Singapore Index or SiMSCI for short comprises of a basket of 31 Singapore stocks.

Constituents of SiMSCI

So when you buy one Singapore Index Futures Contract, you are buying a contract with its value and price movements linked to the price movements of a basket of 33 stocks represented in the Singapore Index.

The value of the Singapore Index Futures Contract is calculated by using the index price traded at SGX-DT multiplied by S$200, that is, 1 index point is equivalent to S$200 in value.

If the index price traded is 150 index points, then the value or size of the Singapore Index Futures Contract bought or sold is S$30,000.

When you buy a Singapore Index Futures Contract you make a profit of S$200 for every point that the index moves in your favour (index rises) and you lose S$200 for every point the index move against you (index falls).

The reverse occurs when you sell a Singapore Index Futures Contract.