The Small Exchange celebrated its one-year anniversary with the launch of the first futures contract on marijuana stocks.
Small Cannabis, listed under the S420 symbol, is based on an index that includes 21 producers and distributors of medical and recreational cannabis products. Among the companies included are Tilray Inc (NASDAQ:TLRY), Canopy Growth Corp (NASDAQ:CGC) and Cronos Group (NASDAQ:CRON).
A First Of Its Kind
The Small Cannabis S420 futures contract is the first to offer the capital efficiency of futures on a basket of equities that is designed to track future growth in the cannabis industry.
As of the product’s launch on June 21st, one contract has a notional size of approximately $1,200 with a capital requirement of just $204 initial margin to trade. Investors and day traders alike can enjoy diversified access to this burgeoning asset class in a product that utilizes approximately 50% less capital to trade than ETF alternatives.
The new S420 futures contract provides well-rounded exposure to this relatively young stock sector while reducing the specific risk of single-name equities. The product trends more with the supply and demand of cannabis products themselves than with earnings releases of any particular company in the cannabis ecosystem.
Small Cannabis’ unique exposure also offers a diversification play for those invested in popular equity benchmarks like the S&P 500 given its positive, but low correlation to…
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The Small Exchange celebrated its one-year anniversary with the launch of the first futures contract on marijuana stocks.
Small Cannabis, listed under the S420 symbol, is based on an index that includes 21 producers and distributors of medical and recreational cannabis products. Among the companies included are Tilray Inc (NASDAQ:TLRY), Canopy Growth Corp (NASDAQ:CGC) and Cronos Group (NASDAQ:CRON).
A First Of Its Kind
The Small Cannabis S420 futures contract is the first to offer the capital efficiency of futures on a basket of equities that is designed to track future growth in the cannabis industry.
As of the product’s launch on June 21st, one contract has a notional size of approximately $1,200 with a capital requirement of just $204 initial margin to trade. Investors and day traders alike can enjoy diversified access to this burgeoning asset class in a product that utilizes approximately 50% less capital to trade than ETF alternatives.
The new S420 futures contract provides well-rounded exposure to this relatively young stock sector while reducing the specific risk of single-name equities. The product trends more with the supply and demand of cannabis products themselves than with earnings releases of any particular company in the cannabis ecosystem.
Small Cannabis’ unique exposure also offers a diversification play for those invested in popular equity benchmarks like the S&P 500 given its positive, but low correlation to…
