Using futures to hedge my portfolio

[cypresswang]

Hi Folks.I'm thinking to use SPI200 to hedge my portfolio,but I'm not 100% sure how should i do it.I have already calculated the hedge ratio which tells me to long 75 SPI200 contracts.should i hold these contracts until maturity or should I change my position on them based on everyday changes.

 

[skc]

Re: how to use futures to hedge my protfolio

Hi Folks.I'm thinking to use SPI200 to hedge my portfolio,but I'm not 100% sure how should i do it.I have already calculated the hedge ratio which tells me to long 75 SPI200 contracts.should i hold these contracts until maturity or should I change my position on them based on everyday changes.

Long 75 SPI 200??

Each SPI is 4600 x $25 so long 75 SPI 200 = $8.625m.

And I hope you mean short...

 

[cypresswang]

Re: how to use futures to hedge my protfolio

Long 75 SPI 200??

Each SPI is 4600 x $25 so long 75 SPI 200 = $8.625m.

And I hope you mean short...

YES!!you are right.it was short.