Interrelated Markets

The key for liquidity is the ability to arbitrage and you had risk managers. The SAP 500 stocks are at that time you had a smaller index which was about 28 of the Dow contracts. If you liked 27 of them you could do that and sell the futures and be implicitly short the one instrument that's not there. This stuff is all linked and that is important because to have a successful market you need investors, speculators and arbitrizers.

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