We can clearly see that the restrictions on stock index futures are becoming more and more relaxed. As far as this time is concerned, the first thing to do is to adjust the trading margin ratio to 10%- 15%, which means that the leverage ratio is higher than the previous 15%-30%, and the 100 futures contract is the lowest 10. Secondly, it is a good thing for institutions that 50 lots of single contracts are over-traded in the day, compared with the previous 20 lots. Furthermore, the purpose of reducing the handling fee and stimulating the transaction is obvious.

But for many small white and even investors, stock index futures are not common, so the author also hopes to unveil its mystery to everyone.

What is stock index futures?

Generally speaking, futures are standardized contracts, not "physical objects". The agreement to trade this contract is called a futures contract. Futures are generally divided into commodity futures and stock index futures. The former corresponds to cotton, soybeans, oil and other commodities, while the latter corresponds to the three major stock indexes-Shanghai and Shenzhen 300(IF), Shanghai 50(IH) and China Securities 500(IC), and is also a futures product listed and traded in CICC. The purpose of futures is to lock in future prices and reduce losses caused by market fluctuations.

Why is stock index futures so concerned?

At present, there is no real short-selling mechanism in China, which can only be said to be hedging. Therefore, stock index futures are the first choice for public offering, private placement and other investment institutions to hedge investment risks, and the actions of stock index futures have a great impact on their performance. Why do you say that? If you don't quite understand, please continue reading.

The fundamental source of stock index futures hedging/profit lies in the basis. What is the basis? For example, Xiaobai now has 1 yuan in his hand, just like the spot; But after 3 months, it is not only 1 yuan (currency has time value), but the sum of principal and interest. The sum of principal and interest after three months is like futures. Then the difference between futures and spot is called basis.