Stock index futures are financial futures contracts based on the stock price index of the stock market. By introducing stock index futures trading, a short-selling mechanism is formed in the stock market to stabilize the market. For example, when your stock price is already relatively high, you may buy bearish stock index futures, even if you are afraid of it rising when you sell it, but sometimes you are afraid of it falling. If the stock really falls at a high level, you can sell it immediately, and at the same time, your losses will be compensated in the put index futures you bought, and you can even continue to hold it for profit. This is the hedging function of index futures. It is precisely because of the hedging function of stock index futures that once the stock price is too high, people will naturally increase the trading of short-selling operation of stock index futures. Conversely, stock market participants will adjust their positions through the changes in the stock index futures market, thus inhibiting the excessive rise of stock prices; The same is true in the opposite direction. Therefore, the introduction of stock index futures will help stabilize the market.

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