Bond Futures
A Bond Future is a contractual obligation for the contract holder to buy or sell a Bond on a specified date at a predetermined price. The buyer (long position) of a Bond Future is obliged to buy the underlying Bond at the agreed price on expiry of the future. The seller (short position) of a Bond Future is obliged to deliver the underlying bond at the agreed price on expiry of the Future. The JSE offers Bond Futures Contracts on the underlying government and corporate bonds.