Duoping is a bull. Long position closing means that the holders of empty orders take the initiative to buy and transfer at a price, rather than queuing up to buy and transfer at a price.

Second,

Stock index futures can be sold short.

1, a prerequisite for short selling is that you must borrow a certain number of shares from others first. There are strict conditions for short selling in foreign countries, and more than half of stock index futures transactions include short selling positions.

2. For investors, the most attractive thing about the short-selling mechanism is that when the overall trend of the stock market is expected to decline in the future, investors can take the initiative instead of passively waiting for the stock market to bottom out, so that investors can also make a difference in the falling market.

Low transaction cost

Compared with spot trading, the transaction cost of stock index futures is quite low, which is only about one tenth of that of foreign stocks. The cost of index futures trading includes: trading commission, bid-ask spread, opportunity cost of paying margin (also called margin) and possible taxes. A futures transaction in the United States (including the complete transaction of opening and closing positions) only charges about $30.

Stock index futures are delivered in cash.

1. Although the futures market is a derivative market based on the stock market, it is delivered in cash, that is, only the profit and loss are calculated at the time of delivery, and the physical object is not transferred. During the delivery period of futures contracts, investors do not have to buy or sell the corresponding stocks to fulfill their contractual obligations, thus avoiding the phenomenon of "crowding" in the stock market during the delivery period.

Generally speaking, the stock index futures market focuses on buying and selling according to macroeconomic data, while the spot market focuses on buying and selling according to the situation of a single company.

The function of stock index futures can be summarized as four points. 1. Avoid system risks. 2. An active stock market. 3. Diversify investment risks. 4. You can hedge.

superiority

Compared with stocks traded in the stock index, stock index futures have important advantages, mainly in the following aspects:

1. Provide convenient short selling.

(1) A prerequisite for short selling is to borrow a certain number of shares from others first. There are no strict conditions for short selling abroad, which makes it difficult for all investors to complete short selling in the financial market.

(2) For example, in Britain, only securities market makers can borrow British stocks; American Securities and Exchange Commission rule 10A- 1 stipulates that investors must borrow shares through securities brokers and pay a certain amount of related fees.

(3) Therefore, short selling is not suitable for everyone. The trading of index futures is not like this. In fact, more than half of index futures trading includes short selling positions.

2. The transaction cost is low.

Compared with spot trading, the cost of stock index futures trading is quite low. The cost of index futures trading includes: trading commission, bid-ask spread, opportunity cost of paying margin and possible tax.