Currently, investment risks are dramatically increasing. Investors put their energy mostly on hedging risks they face. The Stock Index Future is a very important financial tool in that it provides an opportunity to hedge risks in the financial market....
Currently, investment risks are dramatically increasing. Investors put their energy mostly on hedging risks they face. The Stock Index Future is a very important financial tool in that it provides an opportunity to hedge risks in the financial market.
KOSPI 200 Index future will be introduced in May 1996 and many investors are still worry about side-effects of Stock index future, for example, an outflow of social wealth.
This study examines effects of KOSPI 200 on Korean financial Market. The regulations in spot and future market have to be improved in order to encourage fair competition between Korean and foreign investors. Moreover, institutional investors have to develope trading strategies.