Stock price index futures English translation sharing? PriceIndexFutures, short for SPIF, can also be called stock index futures and futures. As a type of futures trading, stock index futures trading has basically the same characteristics and processes as ordinary commodity futures trading. Judas stock index futures analyst network pointed out that the two sides of the transaction are trading at the stock index price level after a certain period of time, and delivery is made through cash settlement difference.
There are three main uses of stock index futures:
1, as a leveraged investment tool. For example, if the margin rate is 10%, and you buy the 1 Shanghai and Shenzhen 300 index futures at the price of 1000, if you judge the wrong direction, the same loss will occur, then as long as the futures price rises by 5%, you can make a profit of 50% compared with the margin of 100 yuan. Due to the margin trading of stock index futures, as long as the judgment direction is correct, it is possible to obtain higher expected annualized expected returns.
2. Arbitrage with stock index futures. The so-called arbitrage is to use the pricing deviation of stock index futures, or short the index components of stock index futures, buy stock index futures at the same time, and sell stock index futures by buying the index components of stock index futures at the same time, so as to obtain the risk-free expected annualized expected return.
3. Manage the risk of stock portfolio, that is, guard against systemic risk (what we usually call market risk). Usually we use hedging to manage our stock investment risk.