Its operation mode is: the trading parties of stock index futures buy or sell a specific stock index contract at a certain point in the future, which stipulates the obligations and rights of buyers and sellers. When the contract expires, both parties must make delivery according to the price and quantity stipulated in the contract, or they can choose to close the position in advance. In futures trading, if the contract price rises, long traders can make profits by selling futures contracts, while short traders can make profits by repurchasing futures contracts if the contract price falls.
The trading price of stock index futures is determined by the relationship between market supply and demand, so the fluctuation of stock index futures price is mainly affected by macroeconomic, policy changes, market sentiment and other factors. Stock index futures have leverage effect, and a certain margin can control larger positions, so it can achieve greater returns or greater risks. Therefore, stock index futures is a high-risk and high-return investment tool, which requires investors to have sufficient risk tolerance and market analysis ability.