Ibovespa Futuro: understand what it is and how it works

THE financial market offers a world of possibilities for anyone involved with investments and stocks. Within this context, there is Stock Exchangewhere there are constant negotiations according to world performance indices and events that can directly impact the finances of thousands of companies.

THE index Ibovespafor example, is one of the most important, as it shows the average price performance of Brazilian stocks, which are constantly traded on the B3 (or B³), our country’s stock exchange, located in São Paulo. It’s the Future Ibovespa consists of another indicator, which also refers to the variable income and it can be quite complex as it deals with assets that will only be liquidated at other times.

(Shutterstock/Reproduction)(Shutterstock/Reproduction)Fonte:  Shutterstock

But if all this seems too difficult to understand at first, below we will explain what all these terms mean and how it all works in a broad way. Check out!

What is the Ibovespa Futuro?

Through the Brazilian stock exchange, investors can trade shares in around 500 large companies in our country. Along with this negotiation will be the Ibovespa, which through its action methodology it can measure and faithfully represent the behavior of the market in a given period in relation to the sale of shares, as well as the performance of all of them.

Within the index, theory becomes practice, as investment portfolios are modified based on studies that monitor negotiations and the profile of investors. In the end, everything is mathas a weighted average of these performances is calculated so that the index data can be known.

(Shutterstock/Reproduction)(Shutterstock/Reproduction)Fonte:  Shutterstock

And now that you know, in general terms, what the Ibovespa is, let’s delve deeper. Every day, the shares of a certain company can plummet or also become very disputed, either because of some external factor or some issue perceived in the performance indexes.

If this happens constantly, how are speculations about stocks in the future? It is from this topic that the Future Market exists within the Stock Exchange. And, of course, next to it is the Ibovespa Futuro as an index that measures the performance of these shares and those investments that have not yet taken place.

Starting from an expectation of value for shares on certain dates, the index starts to perform calculations based on these speculations. In this way, a trading contract with an expiration date is created, in which investors will bet a certain amount for the index in the future.

(Shutterstock/Reproduction)(Shutterstock/Reproduction)Fonte:  Shutterstock

As it is a bet, there are more risks involved, because on the Ibovespa Futuro there is no way to know if your money will depreciate or increase on the chosen date. If in the Ibovespa index the appreciation or devaluation are presented in papersat Ibovespa Futuro what counts are the spots.

How does Ibovespa Futuro work?

At some point in your life, you must have watched the TV news anchor talking about the average Ibovespa index closed on a given day, right? Well, these numbers are generated daily so that professionals working in the stock market have control over what is happening and thus keep their plans and investments in line with what they expect.

With the Ibovespa Futuro it is not so different. What happens is that the expiration dates signed in the contracts of the past of investors who decided to participate in these bets begin to expire and the points can finally be awarded, especially due to the inconsistency and variables that appear at all times in the financial market.

(Shutterstock/Reproduction)(Shutterstock/Reproduction)Fonte:  Shutterstock

Let’s give an example with numbers: if on March 1st the Ibovespa Futuro presents itself with 50 thousand points and an investor decides to trade a futures contract with maturity on March 15th valued at 75 thousand points, to know if the bet worked, it is necessary wait until the due date expires.

So, on March 15th, if the index has the same number of points, the investor will have a loss, as he will have paid an amount for the contract based on a perspective that did not materialize. However, if on March 15th the index presents itself with 80 thousand points, there will be a profit and the operation will be successful.

It is important to remember that, in order to trade on the Futures Market, it is necessary to be clear about the inconsistency of the economy and to analyze perspectives for the coming days with great caution. In general terms, the Ibovespa Futuro is interesting for long-term investors who are not so concerned, at first, with risks – which can also be low.

Did you like the content? So stay tuned here at TecMundo to know all about the main trends in the market!

Leave a Comment