• An index future is a form of derivative and if used for hedging requires a special hedge accounting treatment. When used as a mere speculative position, normal accounting entries are recorded.
  • When the investor buys the index futures, then the investor has to square off the position by adjusting the difference in cash, as there is no question of settlement through delivery in the case of index futures.

Please enrol me for the free email course

on Basics of Accounting for Financial Instruments

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!