Because objectively speaking, the futures market represents the future price. Who can decide the future price? Is it easy to understand? With this premise, it can be said that futures and spot are still the same thing, and their prices will basically have a unity.
Then answer your last question. For example, it is clear that when the Dow Jones index futures and spot prices rise due to news stimulation, you will find that futures will rise even more. At this time, people who hedge like us will go to the spot and short futures, because futures have risen much, but the market is changing from time to time. When the Dow Jones index falls or goes flat, we can make multiple spot short futures to complete the transaction (because at this time, we will see that the Dow Jones index spot is likely to be short).
I can take the hedging of Australian stock spot and stock index futures as an example to share with you.
Individual stocks are the largest large-cap stocks in Australia, and China people should also know about bhp Billiton and the Australian market (S&: p200)
The method of hedging arbitrage is simple: when the price difference between the index and s& large-cap stocks is the largest, such as BHP Billiton and s & ampP200 (preferably super-large-cap stocks and index. Another example is the relationship between google and nasdaq 100). For example, BHP Billiton dropped by 8% s&; P200 has increased by 2%, which means the price difference is 10%. At this time, you can short the high S &；; P How much is the low-level bhp, but the amount of s& is just like doing 1w BHP and shorting 1w S&; P Because BHP Billiton can enlarge its deposit by 3% (that is, 330 yuan's deposit), because it is a long position, the daily interest is basically -2 yuan's&; P200 can be enlarged by 0.5% (60 yuan), and the interest earned by shorting is basically +2 yuan, and the daily interest can be washed away once BHP Billiton and S&; When the spread of p200 becomes smaller, s& will make money, otherwise, how low BHP Billiton will continue to short high s & Generally speaking, the risk of p200 is not great (the only risk is that BHP Billiton plummets but the index soars, which is generally impossible for such a heavyweight whose index has stood at 33%), but the disadvantage is that the income will not be very high, and I don't know how long the spread will be minimized. If the price difference between the last two is 0%, then your return is 5% of1w. If BHP Billiton surpasses S&; P200 is certainly better (because you earn more than 5%).
After reading it, you may ask, why not just make a variety show and make a direction? In fact, the reason why one is long and the other is short is to reduce the risk, because if the market falls, the stock will also fall, and you will lose money while making profits. As for why this arbitrage method is used when the price difference between large-cap stocks and individual stocks is large, it is because these two varieties are always of the same value (if you do one more casually when the large-cap stocks and indexes are of the same value, shorting the other is gambling, isn't it? )。
I hope what I said is not too difficult to understand _