Anyone who has participated in stock trading will inevitably encounter a problem: only when the stocks in the stock market or even in their hands rise can they make a profit; When you fall, you can only watch the stock depreciate or cut the meat out. When selling stocks, you must have stocks in your hand. In particular, once the funds with "heavy" transactions enter and exit, the handling fee alone is not small. How to solve this problem? How to preserve the value of stocks in your hands? Stock index futures can preserve the value, or they can be sold first and then bought.

In the absence of a single stock futures transaction, we can set up stock index futures that can show the trend of the broader market, sell short when the stock market falls, so as to preserve the value of the stocks in our hands or simply use the rise and fall of the stock market to speculate on stock index futures.

for instance

Suppose the Shanghai Stock Exchange index futures trading is opened. When the index reached 2000 points, the market began to fall. As a fund manager, the position is too heavy to be fully shipped, so you can short the corresponding number of index futures contracts. After the market fell, although the stock in his hand depreciated, the short position of stock index futures in his hand was indeed profitable. If short future positions is liquidated in a certain position, his profit can make up for the loss of stock depreciation in whole or in part. So are individual investors.

Usually, stock trading is a firm transaction, that is, "a penny for goods, a penny for goods"; One of the biggest hotspots in futures trading is leveraged trading, that is, small and wide. If the margin ratio is 10%, then one tenth of the funds can be made into a 100% transaction. This is why futures trading has both high returns and high risks. For those speculators, they don't really want to buy stocks to invest, but just use the rise and fall of the stock market to earn the difference and profit. Participating in stock index futures trading is also an option. For example, when the index reaches 2000 points, speculators judge that the stock market is going to fall, so they short the index futures contract in time and hand over the short future positions at a certain position to close the position. Unlike fund managers, speculators' profits at this time are net profits.

China's stock index futures have been listed in Shanghai and Shenzhen 300, 20 10 and 16 in April!