Secondly, the short-selling mechanism of stock index futures is more conducive to increasing the confidence of holding positions in the spot market. Large funds can avoid risks by opening positions, increase their confidence in holding positions and reduce a large number of chips that should have been thrown out. The increase in market adjustment and volatility is precisely because institutions have issued a large number of short futures orders that they are confident to continue to hold a large number of spot chips and minimize the selling pressure in the market.
Finally, the ability to avoid risks is strong. In the stock index futures market, the number of short-term traders and day traders is very large, which is completely incomparable to the spot market, while investors in the stock index futures market are mostly speculative orders, that is, intraday trading orders that will be closed on the same day, which are very speculative and liquid, because these orders do not care about the future market evolution. If the stock index futures market is used for hedging, investors can avoid the risk of market fluctuation more effectively, especially lock some chips when the market is adjusted, thus playing a positive role in stabilizing the market.