Stock index futures trading is based on spot stock index. After the target of the stock index futures contract is determined, its corresponding constituent stocks are of course determined, but in order to facilitate the standardized trading of the contract, it is necessary to stipulate the contents of the contract. Its main contents are briefly described as follows.
1. Contract multiplier
In stock index futures, the index value is monetized, that is, every point of the futures stock index represents a certain amount of money, and this fixed amount is the "contract multiplier". The contract multiplier of each stock index futures is different. For example, the contract multiplier of Hang Seng Index futures is HK$ 50 per point.
Stock index futures use index points to quote. For example, Hang Seng Index Futures 15000 is its price at a certain moment.
2. Contract value and deposit
The contract value is obtained by multiplying the contract multiplier by the number of stock index futures points.
If multiplied by the margin ratio, you can get the margin amount that should be occupied in trading the first-hand stock index futures contract.