Stock index futures provide high-risk opportunities. One of the simple speculative strategies is to use stock index futures to predict market trends in order to obtain profits. If the market price is expected to rebound, investors will buy futures contracts and expect the futures contract price to rise. Compared with investing in stocks, its low transaction cost and high leverage ratio make stock index futures more attractive to investors. They may also consider buying contracts for the trading month, or investing in Hang Seng Index or sub-index futures contracts.
Another conservative speculation method is to hedge by using the price difference between the two indexes. If investors expect the real estate market to pick up, but at the same time want to reduce market risks, they can hedge by using the real estate classification index and the Hang Seng Index, and hedge by holding good positions in real estate and short positions in the Hang Seng Index.
A similar method can be achieved by using the same index but different contract months. Usually, forward contracts respond more to the market than short-term contracts and indexes. If speculators think that the market index will rise but are unwilling to bear the consequences of misjudgment, they can buy forward contracts and sell monthly contracts at the same time; However, it should be noted that forward contracts may be affected by weak trading and face the risk of low liquidation opportunities.
Using different indexes to diversify investments can reduce risks, but it will also reduce returns. In the case of completely avoiding risks, conservative investment strategies may lead to no return.