How to make a profit by shorting stock index futures contracts?
Quite simply, short the stock index futures contract. For example, shorting a stock index futures contract at 3000 points is equivalent to borrowing a stock index futures contract and selling it at 3000 points. When the contract price drops to 2800 points, you buy it back. In the process, you paid back what you borrowed, but you earned a difference of 200 points.