Index futures 2.

(1) Stock index futures may be used as an investment instrument, the return on which is expected to be representative of the stock market as a whole or a sector thereof. They are also sometimes used to hedge an actual portfolio whose composition moves in parallel to the composition of an index representative of the stock market or sector. (2) For example, the Montréal Exchange (Mx) offers S&P Canada 60 Index Futures (SXF) and Sectorial Index Futures (SXA, SXB, SXH, SXY). (3) Since the underlying does not exist per se, it cannot be delivered at maturity. Any position still open at maturity necessarily triggers the payment of the price differential.