Stock index futures are standardized futures contracts with stock price index as the subject matter. It is a kind of futures, which can be used to reduce or eliminate systemic risks.
Stock index hedging is a kind of hedging position, which reduces investment risk by hedging between spot and futures. That is, the price changes of stock index futures and stock index are convergent, and when the futures contract expires, the changes tend to be consistent, thus reducing the risk.
According to different operating strategies, we divide stock index hedging into long hedging and short hedging. Short hedging, that is, the behavior of stock holders to sell stock index futures in the futures market in order to reduce the risk when they see that the market outlook is not good and expect the stock price to fall soon; Long hedging, that is, investors are optimistic about the market outlook and expect the stock price to rise soon. In order to control the investment cost, they first buy stock index futures and lock in the price level of the stocks they buy in the future. Futures hedging needs to complete the following steps.
First, you need to calculate the market value of the stock you currently hold.
Secondly, based on the futures price in the expiration month stipulated in the contract, the number of contracts required for futures hedging is calculated.
Finally, clearing and settlement will be carried out when the contract expires.
When trading stock index futures, we should keep in mind that we should follow the trend of the market, that is, when the stock price falls, we should perform short operation and when the stock price rises, we should perform long operation; Before intervention, set a stop loss position according to your risk tolerance; Control positions, positions should not exceed 50%, so as to have enough funds to cope with changes in market conditions.
Ok, what are the methods of hedging stock index futures? The introduction is over. Everyone should understand. If you want to learn about investment and financial management, you must master the above skills. More investment information, welcome everyone to pay attention to us!