In this video we focused on hedging and why futures are often considered a good way to control the asset exposure in our portfolio. The example I gave in the video was being long QQQ shares and wanting to reduce our long exposure without having to sell our underlying position. One easy way of doing this is by selling futures that are correlated to the assets we hold. (Sometimes 100% correlated but in most cases will result in an imperfect correlation). We discovered that many of the existing futures contracts have very high notional values and are not suitable for hedging smaller portfolios. One option that exists is the STIX (Small technology 60) which has a close correlation to the Nasdaq 100 stock index. This is a suitable option for hedging a long QQQ position that is anywhere under $50k notional value. Let me know what you thought of this video in the comments below!

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Disclaimer: The content that this channel provides is intended for educational purposes only. Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. The risk of loss in trading commodity interests can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition.

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