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Reasons why insurance companies actively participate in derivatives market
Reasons why insurance companies actively participate in derivatives market;

1. Insurance institutions provide hedging for their equity assets through stock index futures.

2. Insurance companies hold more than 70% of cash coupons, and the participation of insurance funds in derivatives trading will have a positive impact on both parties.

When an insurance institution participates in derivatives trading, the sum of long derivatives contracts held by the same portfolio shall not be higher than 100% of the net value of the portfolio.