An investor holds 10 listed stocks in the Hong Kong stock market with a total market value of HK$2 million. The investor expected that the Southeast Asian financial crisis might trigger an overall decline in the Hong Kong stock market. In order to avoid risks and conduct hedging, he sold three three-month Hang Seng Index futures at a price of 13,000 points. In the following two months, the stock market fell sharply. The market value of the stock held by the investor depreciated from HK$2 million to HK$1.55 million, and the stock market lost HK$450,000. At this time, the Hang Seng Index futures also fell to 10,000 points, so the investor bought the original 3 contracts by closing the position in the futures market, realizing a closing profit of HK$450,000 in the futures market. The profit in the futures market exactly offset the spot price. Market losses are better achieved as hedging. Similarly, stock index futures, like other futures varieties, can use the price difference between buying and selling for speculative trading.