Is there a relationship between stock index futures and stocks?
Yes, stock index futures are futures with the stock index as the subject matter. Stock index futures are traded on the Shanghai and Shenzhen 300 Index, so they are positively related to the stock market. Generally speaking, stock index futures rise, so does the stock market. If stock index futures fall, the stock market is likely to fall.
Stock index futures trading parties trade the price level of stock index after a certain period of time, and make delivery through cash settlement of the price difference. When buying and selling stock index futures, it is recommended to pay more attention to the overall trend of stocks and make judgments. If the stock index price fluctuates greatly, it is recommended to set a stop loss position.
The difference between stock index futures and stocks;
1 The futures contract has an expiration date and cannot be held indefinitely:
Stocks can be held all the time after buying, and the number of stocks will not decrease under normal circumstances. However, stock index futures have a fixed expiration date and will be delisted when it expires. Therefore, trading stock index futures cannot be equated with buying and selling stocks. After trading, we must pay attention to the expiration date of the contract to decide whether to close the position in advance or wait for the expiration of the contract (fortunately, the stock index futures are settled in cash and do not need to actually deliver the stock), or to transfer the position to next month.
2 Futures contracts are margin transactions and must be settled daily:
Stock index futures contracts use margin trading. Generally, a contract can be bought and sold only by paying about 10- 15% of the contract face value. On the one hand, it improves the profit space, but on the other hand, it also brings risks, which requires daily settlement of profits and losses. After buying a stock, the book profit and loss are not settled before selling. However, stock index futures are different. After the transaction, the contract held in hand should be settled at the settlement price every day, and the book profit can be withdrawn, but the book loss (that is, additional margin) must be made up before the opening of the next day.
3 Futures contracts can be sold short:
Stock index futures contracts can be easily sold short and then repurchased after the price falls. It is ok to short stocks, but it is relatively difficult. Of course, once the price rises instead of falling after short selling, investors will face losses.
4. The market liquidity is relatively high:
Research shows that the liquidity of stock index futures market is obviously higher than that of stock spot market. For example, 199 1, the trading volume of FTSE-100 index futures has reached 85 billion pounds.
5. Stock index futures should be delivered in cash:
Although the futures market is a derivative market based on the stock market, the futures delivery is carried out in cash, that is, only the profit and loss are calculated at the time of delivery, and the physical object is not transferred. During the delivery of futures contracts, investors do not have to buy or sell the corresponding stocks to fulfill their contractual obligations.
Stock index futures are closely related to the stock market, but they are essentially different. After all, stocks are stocks, and stock index futures belong to futures. They have similarities and differences. The stock index futures market focuses on buying and selling according to macroeconomic data, and stocks focus on buying and selling according to the situation of individual companies.