The level of water generally refers to the price offered by the dealer to the peripheral gamblers.
Ultra-low water below 1.8; The water level from 1.89 to 1.85 is medium-low water; The water level from 1.90 to 1.99 is reclaimed water; Super high water level above 2.06.
High water, also known as premium, usually refers to high futures and spot prices. Take the Hang Seng Index as an example. If the futures index is higher than the Hang Seng Index (the Hang Seng Index), it is called a high futures index.
If the water level of futures index is high, it will generally be considered as a good indicator of the market outlook, because investors in the futures market are willing to buy futures index at a price higher than that in the spot market, indicating that investors have confidence in the market outlook.
Extended data:
Principle:
The term "futures" means that the price is determined now and will be settled on the expiration date of the future contract (that is, the settlement date at the end of each month).
On the settlement date, the futures price should be equal to the spot price, and the spot index should be equal to the HSI. Therefore, the current price of the futures index is only an estimate of the closing price of the HSI on the future maturity date. Therefore, when the futures index is low, it means that investors estimate that the Hang Seng Index will fall in the future and the market outlook will be weak.
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