Reporter.gr: More Mutual Funds for Trading on Sibiu Stock Exchange

Romania: More Mutual Funds for Trading on Sibiu Stock Exchange
12:25 - 13 October 2006

More and more mutual funds have been turning to the Sibiu Monetary-Financial and Commodities Exchange over recent months, due to good profit margins and the growth of liquidity, according to Ziarul Financiar.ro At the beginning of the year, Transilvania was the only fund investing on the futures market, now there are more than 10 out of 32 funds operational at the moment that invest in such contracts. The funds use the Sibiu market especially for hedging operations (risk coverage for periods of decline of the stock exchange), as well as for speculative operations. Managers of mutual funds show more interest in the transactions on the Sibiu market. The introduction of nine-month and 1-year maturity terms has played a large part in increasing the volume of transactions on the futures market, as high liquidity has attracted a growing number investors. Another advantage offered by the Sibiu Exchange is the possibility of margin trading, which allows investors to gain more from price fluctuations.

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