The derivatives market in Saudi Arabia will be launched next Sunday, with the start of trading futures contracts for the MT30 index, which is the first financial derivative product to be traded in the financial market.
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According to Arabiya Net, this launch represents an important step in the endeavors to develop the Saudi financial market, and to provide investors with an integrated and diverse range of products and services. MT30 index futures contracts (for which the MSCI Tadawul 30 MT30 is the primary asset) were developed to provide investors with trading and hedging tools to further manage risks.
and the financial derivatives market is the market in which contracts are traded, not securities in the known sense, and a contract is a fixed-value agreement concluded by two parties, provided that the implementation is completed, i.e. payment and delivery. At a later date, those contracts derive their value from the value of the contained securities, and depend on the change in the value of those securities.
There are three main types of derivative contracts that are related to securities: futures contracts, futures contracts, and options contracts.
and futures contracts are traded in unregulated markets, while futures and options are traded in regulated markets.
(Amazon fun knowledge)
