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Dar es Salaam Stock Exchange
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Derivatives

DSE Derivatives Market

Single stock futures (SSF) are based on leading blue-chip companies that trade in the Main Market segment of DSE.

All derivative contracts on DSE are settled in cash by the clearing house.

DSE also trades DSE 15 index futures based on the DSE 15 index.

DSE Derivatives Types

  • Single Stock Futures (SSF)
  • Index Futures

Active Contracts

  • 16 SSF contracts
  • 1 Index Future

Contract Size

  • 100 shares per SSF
  • 1 TZS × Index for DSE 15

Settlement

  • Cash settled via the clearing house

Benefits of derivatives

Benefits of Derivatives

The derivatives market brings exciting opportunities for investors to diversify and hedge their investments in an efficient and cost-effective way.

Cost-effectiveness

Trading derivatives can sometimes be more cost-effective than buying and selling the underlying asset itself, especially for frequently executed trades.

Diversification

Derivatives offer a way to diversify your investments beyond just stocks. This can help distribute risk and potentially improve your portfolio's overall performance.

Efficiency

Derivatives can be a more efficient way to gain exposure to a particular asset class or market movement compared to buying the underlying asset directly.

Hedging

You can use derivatives to hedge existing holdings, mitigating potential losses from price movements in the underlying asset (like stocks).

Leverage

Derivatives can allow you to leverage your capital, potentially magnifying gains (but also losses). (Note: leverage is a high-risk strategy and should be used cautiously).

Flexibility

Unlike stocks, derivatives can allow investors to profit from a decline in the price of an underlying asset. Investors can start their trade with a sell position.

Profit & Loss (P&L) Calculator

A gamified simulation for investors to see how their derivatives positions will behave in different scenarios of price change of the underlying asset.

Position

Number of contracts

1
1
10,000

Initial margin rate

3%
3%
30%

Price move

-30%
0%0%
+30%

This calculator is provided for educational and illustrative purposes only and does not constitute investment, legal, or financial advice, nor an offer or recommendation. The results are based on hypothetical assumptions and user inputs and may not reflect actual market performance or all associated risks and costs. The Exchange and its affiliates accept no liability for any loss or damage arising from the use of, or reliance on, this calculator.

How to Trade Derivatives

Simple steps to start trading derivatives on DSE

  1. 01

    Open an account with an approved DSE derivatives broker

    Once you've completed the 'know your client' process, your broker will ask you to read, acknowledge and sign a risk disclosure statement.

    Get started by downloading our mobile app to access real-time market data, execute trades, and manage your portfolio on the go.


    Access the list of licensed brokers

    Licensed Brokers
  2. 02

    Existing Clients

    If you already have an account with an approved derivatives broker, simply sign the risk disclosure statement and update your client agreement to include DSE derivatives. Once that's done, you're ready to start trading equity futures on the exchange.

  3. 03

    Deposit Margin

    To be able to trade, you will need to deposit an initial margin with your broker based on the value of the contracts you wish to trade. The broker will tell you how much initial margin is required. You'll need to deposit this before you can execute any trades.

  4. 04

    Daily Mark to Market (Variation) Margin

    Any executed trades that are open at the end of each trading day are settled in cash, based on the daily settlement price, as set out in the clearing procedures. This may require you to deposit additional funds in case your open position shows a loss.

  5. 05

    Square Off

    Once you close the contract position, then at the end of the trading day, the initial margin is released and cash settlement is done, after adjustment for any profit or loss.

  6. 06

    Holding until Expiry

    You can hold all the contracts you trade until the expiry date of the contract. Any contracts that remain open at the end of the expiry day will be settled automatically in cash based on the official closing price of the underlying.