By contrast, average dollar volume on the Big Board last year was $5.3 billion. Many investment managers say futures are useful as a way to hedge portfolios.
the overall stock market will fall
If managers fear that the overall stock market will fall, but want to continue owning stocks, they can hold on to specific stocks and sell a corresponding amount of futures contracts.
By contrast, average dollar volume on the Big Board last year was $5.3 billion. Many investment managers say futures are useful as a way to hedge portfolios.</s>If managers fear that the overall stock market will fall, but want to continue owning stocks, they can hold on to specific stocks and sell a corresponding amount of futures contracts.</s>the overall stock market will fall