Short-term stock index refers to the short-term trading of stock index futures. Stock index futures can be based on the initial stock price index, agreed to buy and sell the underlying index within a specific period of time, and can be delivered by using the cash difference after the expiration. As a way of futures trading, it has a characteristic flow similar to that of ordinary trading futures, which can be divided into commodity futures and financial futures.

Main functions of stock index futures

1 can effectively avoid investment risks: when investors are not optimistic about the stock market, they can use hedging to short futures, lock in book profits, reduce unnecessary selling and reduce stock market panic;

2. Enrich investment strategies: provide investors with hedging tools for risks, change the singleness of stock market trading strategies, provide investors with a variety of wealth management tools, and achieve long-term stable income goals;

3. Reduce the volatility of the stock market: it can relatively reduce the daily average and monthly average amplitude of the stock market and reduce the irrational fluctuation of the stock market;

4. Arbitrage: If the premium of futures is greater than a certain range, short the stock index futures and buy the index share of the stock index futures, or if the premium of futures is greater than a certain range, do multi-stock index futures and short the stock index ETF through securities lending to obtain risk-free returns.