Current location - Trademark Inquiry Complete Network - Futures platform - How does the main force make money in stock index futures by suppressing large-cap stocks?
How does the main force make money in stock index futures by suppressing large-cap stocks?
People who play stock index futures buy stock index futures and sell contracts.

In this way, they can only make money when the stock price falls! What they do is "buy high and sell low", so keep the price down!

What do you mean short!

A mechanism in the securities and futures markets that can make a profit by shorting. That is, when bearish on the market outlook, sell it at the current price first, buy it back at a low level after falling, and earn the difference. Is to reverse the usual procedures for buying and selling goods.

Usually you have to buy first and then sell at a high price to make money, and this short-selling mechanism can sell what you don't have first. Of course, if this thing goes up later, the short seller will lose money because the price is high when you want to redeem it.

When the market breaks, you can borrow shares from the securities company first (of course, you must have the corresponding funds as a deposit), and then throw them out (called empty). When the stock price falls to an important support level, you buy it and return it to the securities company to earn the difference.

If you think futures prices will go up, go long (buy and open positions), go up (sell) and close positions.

Earn: price difference = closing price-opening price.

If you think futures prices will fall, short (sell and open positions), fall (buy) and close positions.

Earn: price difference = opening price-closing price.