Narrow-Based Index (NBI)

Narrow-Based Index (NBI) - Narrow-Based Index (NBI) is a futures contract on small group of stocks, under ten, in a specified industry sector, such as airlines, pharmaceuticals, semiconductors, or energy. Only in recently legalized in the United States, a futures contract with one stock, basket of stocks, or Narrow-based Index (NBI) as the underlying security. SSF trades in one hundred share blocks. The shareholder gives up the rights and dividends that come with stock ownership, but gains a number of significant advantages. SSF sold short without any of the restrictions of the short-sale rule; margin buying on a 20% basis. Operation fees are less.