Dubai Financial Market launches general index futures contracts tomorrow that can be traded on a variety of assets

The Dubai Financial Market is preparing to launch a future contract on its general index, according to what the market announced, in a statement, indicating that the listing and start of trading futures contracts on the general index will start from the session on Monday, May 29, 2023.

Futures contracts are derivative contracts that allow investors to take advantage of higher leverage in the market, to hedge their portfolios, and to benefit from short selling and lower market prices.

According to the Dubai Financial Market, investors can trade futures contracts on a variety of different asset classes, commodities and financial instruments, in order to reap profits from price fluctuations in the market; Commodity futures contracts allow traders to speculate on the future prices of commodities, while financial futures contracts enable them to speculate on the future prices of financial assets, such as stocks, bonds and foreign currencies.

Futures specifications

Included index: Dubai Financial Market General Index (DFMGI)
Trading currency: UAE dirhams
Contract type: futures
Contract size: 10
Contract value: DFM general index futures price X contract size
Contract Series: Contracts of 3 consecutive months (example: June 2023, July 2023, and August 2023).
Lowest price movement: 0.50
The value of the lowest price movement: contract size x movement size (5 dirhams)
Price limits: 5% up and down from the previous close. DFM reserves the right to redefine and amend daily price limits depending on the market situation.
Settlement type: cash settlement
Daily Settlement Price: The closing price of the futures contract at the end of the session (or) the fair price derived from the asset as determined by Dubai Clear from time to time.
Expiry Date Settlement Price: The closing price of the general index on the last trading day of the contract.
Contract Expiry Day (Last Trading Day): The third Thursday of the expiry month. If the third Thursday is not a business day, the last trading day is usually the business day preceding the third Thursday.
Trading Days: Market working and trading days.
Settlement day: T+1 (the business day following the trading day).
Settlement currency: UAE Dirham
Insertion of the new series of contracts: the second Thursday of the month in which the contract expires (example: the Thursday preceding the contract expiry day)
Trading hours: Monday – Friday 10:00 – 15:00 UAE time.
The maximum order size (in value) is AED 20 million
Direct Big Deals (Number of Lots) 300
Position Limit: 10,000 lots or 30% of the total open positions in the market, whichever is higher.
Margin rate: 5% minimum.
Trading platform number on the market’s order matching system: futures contracts for the general index of the Dubai Financial Market will be listed on the futures contracts platform in UAE dirhams under number (602).