Hedgers refer to institutions or individuals who avoid the risk of stock price fluctuation by buying and selling futures contracts equivalent to stocks but in the opposite direction in the stock index futures market.

Investors must note that the purpose of hedging is hedging, not profit. Hedging transactions must follow certain principles, otherwise it may bring additional risks.

(2) Arbitrator risk

Arbitrator refers to an institution or individual who makes use of the unreasonable price relationship between the stock index futures market and the stock market, as well as between different markets, different varieties and different maturities of stock index futures, and earns the expected annualized expected income from the price difference by buying and selling at the same time.

It is not difficult to see that there are four main types of arbitrage trading:

First, spot arbitrage between stock index futures market and stock market;

Second, cross-market arbitrage between different stock index futures markets;

Third, cross-commodity arbitrage between different stock index futures contracts;

Fourth, the intertemporal arbitrage between different delivery months of the same commodity.

Arbitrage trading is not completely risk-free, and the triggering conditions of its trading are mostly calculated by some mathematical models. The reliability of the model itself and its assumptions is very critical and investors need to pay special attention to it.

(3) Speculators-ability

Speculators refer to institutions or individuals who specialize in buying and selling stock index futures contracts in the stock index futures market, that is, "buy when bullish and sell when bearish" to make profits.

Because the basic asset of stock index futures-the stock index itself has no value, speculators will bear the risk transferred by hedgers in stock index futures trading in order to make profits, which is a high-risk trading behavior.

Speculation requires the knowledge, experience, economic strength and risk management ability of speculators. Ordinary investors should rationally evaluate their risk tolerance and choose carefully.