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What does the second base period index mean?
Two, the base period refers to the China Financial Futures Exchange (CICC) launched the above 50 stock index as the subject matter, the calculation method is the price index, the spot delivery of financial futures. This index reflects the overall trend of large-cap blue-chip stocks in China A-share market and is an important indicator of the A-share market.

Second, the term "foundation" refers to a financial derivative, which can be used for hedging and speculative profit. Some institutional investors and retail investors buy and sell by holding futures index, and do long or short the future trend of the "SSE 50" stock index in order to make a profit. At the same time, futures trading can also play a role in balancing market risks and improving market liquidity.

At the same time, we should also pay attention to the high risk of futures trading, which requires investors to evaluate and control risks according to their own risk tolerance. In addition to normal investment profit and loss, futures trading may also be sought after because of the influence of high leverage, leading to losses or even bankruptcy. Therefore, investors are advised to be cautious and rational in futures trading, buy necessary insurance or hedging operations, and reduce investment risks.