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Brief introduction of real estate index futures
For ordinary residents who want to buy a house, they can buy house price index futures. If house prices really rise, they can close their positions at a relatively high price in the futures market, and their profits in the futures market can offset the risk of rising prices in the real estate market. In short, house price index futures can help participants avoid the risk of unfavorable prices. Of course, the price of hedging is that they lose the profit opportunity when the price changes in a favorable direction. For example, when house prices fall, ordinary residents who want to avoid the risk of rising house prices and buy futures will lose money in the futures market.