TOPIX Options

TOPIX options - function

Update : Apr. 02, 2001

(1) Providing a hedging tool

Many stocks are affected by global events that may have either a positive or negative impact on the economic well-being of the entire market. Such events affect more than one stock. This type of price variability is called systematic risk. TOPIX options provide a means of managing this risk with a view to reducing it.

(2) Easier portfolio management

By using TOPIX options portfolio managers can adjust their portfolios without having a large impact on the underlying stock market.

(3) New investment tools

TOPIX futures provide new investment tools, such as arbitrage and position trading.