There is basically no essential difference between stock index futures and ordinary commodity futures except due delivery. Take a stock index as an example. Suppose it is 1000, that is, the current "price" of this stock index is 1000, and there is a futures contract of this index that expires at the end of February. If most investors in the market are bullish, the "price" of the futures contract of this index may have reached 65438+ at present. If you think that the "price" of the index will exceed 1 100 by the end of 65438+February, maybe you will buy the futures contract of this index, that is, you promise to buy it at the "price" of100 by the end of 65438+February. The index futures contract continued to rise to 1 150 points. At this time, you have two choices, either continue to hold your futures contract or sell it at the current new "price", that is, 1 150. By this time, you have closed your position and gained 50 points. Of course, before the expiration of this index futures contract, its "price" may also fall, and you can continue to hold or close your position to cut the meat. However, when the index futures contract expires, no one can continue to hold it, because the futures have become "spot" at this time, and you must buy or sell the index at the promised "price". According to the difference between the "price" of your futures contract and the current actual "price", refund more and make up less. For example, if the market index is actually 1 130 points when it expires at the end of February, you can get the price difference compensation of 30 points, which means you earn 30 points. On the contrary, if the index is actually 1050 points when it expires, you must take out 50 points to subsidize it, which means you have lost 50 points.

Of course, the so-called "points" of earning or losing are meaningless, and these points must be converted into meaningful monetary units. How much currency a point is converted into must be agreed in the stock index futures contract in advance, which is called the contract multiplier. The value of stock index futures contracts is calculated by multiplying the contract multiplier by the stock index, that is, contract value = contract multiplier × stock index. If the multiplier of this stock index futures contract is 100 yuan and the stock index is 1000 points, then the value of a contract is 100000 yuan.

Stock index futures are settled in cash, not in stocks. When the contract expires, the closing index of the stock market is the settlement standard, and the contract holder only needs to pay or collect the cash difference of the stock index at the expiration to complete the settlement procedures.

Function and function of stock index futures

The Financial Engineering Department of Guotai Junan Securities Research Institute believes that the advantages of stock index futures outweigh the disadvantages. They believe that stock index futures have the function of price discovery. The futures market is extremely liquid because of its low margin and low transaction costs. Once there is information that affects everyone's expectations of the market, it will be quickly reflected in the futures market. And can be quickly transmitted to the spot market, so that the spot market price reaches equilibrium.

There is a risk transfer function. The introduction of stock index futures provides a way for the market to hedge risks, and the risk transfer of futures is realized through hedging. If investors hold stocks related to stock indexes, they can sell stock index futures contracts in order to prevent losses caused by future declines, that is, when the short positions of stock index futures match the long positions of stocks, investors avoid the risk of total positions.

Stock index futures are beneficial for investors to rationally allocate assets. If investors only want to get the average return of the stock market, or are optimistic about a certain kind of stocks, such as technology stocks, if they all buy in the stock spot market, they will undoubtedly need a lot of money. However, if they buy stock index futures, they can track the market index or the corresponding technology stock index with only a small amount of money to achieve the purpose of sharing market profits. Moreover, stock index futures have a short term (usually three months) and strong liquidity, which is beneficial for investors to quickly change their asset structure and rationally allocate resources.

In addition, stock index futures provide new investment and speculative varieties for the market; Stock index futures also have arbitrage function. When the market price of stock index futures deviates greatly from its reasonable pricing, there will be arbitrage activities of stock index futures. The introduction of stock index futures also helps state-owned enterprises to directly raise funds in the securities market; Stock index futures can slow down the impact of fund cashing on the stock market.

Liu of GF Securities Development Research Center pointed out that stock index futures provide a new means for securities investment risk management. It changed the basic mode of stock investment from two aspects. On the one hand, investors have direct means of risk management, and portfolio risk can be controlled within the floating range through index futures. On the other hand, stock index futures ensure that investors can grasp the opportunity to enter the market in order to accurately implement their investment strategies. Take the fund as an example. When there is a short-term depression in the market, the fund can seize the opportunity to leave with the help of stock index futures without giving up the stocks to be invested for a long time. Similarly, when there is a new investment direction in the market, the fund can seize the opportunity and calmly choose individual stocks. It is precisely because the role of stock index futures in active risk management strategy is more and more accepted by the market that in the past twenty years, stock exchanges all over the world have launched this trading variety for investors to choose from.

Qiang Ying of Jiangsu Securities Research Institute pointed out four points when talking about the function of stock index futures. 1. Avoid system risks. 2. An active stock market. 3. Diversify investment risks. 4. You can hedge.

The difference between stock index futures trading and stock trading

1. Stock index futures can be sold short. A prerequisite for short selling is that you must borrow a certain number of shares from others first. Foreign countries have strict conditions for stock short selling, but not for index futures trading. In fact, more than half of index futures trading includes short selling positions. For investors, the most attractive part of the short-selling mechanism is that when the overall trend of the stock market is expected to decline in the future, investors can take the initiative instead of passively waiting for the stock market to bottom out, so that investors can also make a difference in the falling market.

2. The transaction cost is low. Compared with spot trading, the transaction cost of stock index futures is quite low, which is only about one tenth of that of foreign stocks. The cost of index futures trading includes: trading commission, bid-ask spread, opportunity cost of paying margin (also called margin) and possible taxes.

3. The leverage ratio is higher. The higher the leverage ratio, the lower the profit margin. In Britain, a futures trading account with an initial margin of only 2,500 pounds, the trading volume of FTSE- 100 index futures can reach 70,000 pounds, and the leverage ratio is 28: 1.

This market is highly liquid. Research shows that the liquidity of stock index futures market is obviously higher than that of stock spot market.

5. Stock index futures shall be delivered in cash. Although the futures market is a derivative market based on the stock market, it is delivered in cash, that is, only the profit and loss are calculated at the time of delivery, and the physical object is not transferred. During the delivery of futures contracts, investors do not have to buy or sell the corresponding stocks to fulfill their contractual obligations, thus avoiding the phenomenon of "crowding" in the stock market during the delivery period.

Generally speaking, the stock index futures market focuses on buying and selling according to macroeconomic data, while the spot market focuses on buying and selling according to the situation of individual companies.

How to buy and sell stock index futures

Our current stock market is a one-sided market. When the stock market goes up, everyone makes money, and when it goes down, everyone loses money helplessly. The emergence of stock index futures will make the stock market a bilateral market. No matter whether the stock market is up or down, as long as the forecast is accurate, you can make money. So for individuals, the stock index futures market will be a very promising market.

First, when individual investors predict the rise of the stock market, they can buy stocks to increase their positions, or they can buy stock index futures contracts. When the prediction is accurate, both methods are profitable. In contrast, the transaction cost of buying and selling stock index futures is relatively cheap. Second, when individual investors predict that the stock market will fall, they can sell the existing stock spot or stock index futures contracts. Selling the spot is to turn the previous book profit into actual profit, which is a liquidation behavior. When the stock market really falls, it can no longer be profitable. Selling stock index futures contracts is a correct prediction of the future and a profit, and it is a kind of opening behavior. Because of the short selling mechanism, when the stock market falls, even if there is no stock in hand, you can make a profit by selling stock index futures contracts. Third, for long-term investors who hold stocks, or investors who cannot sell stocks for some reason, when they are pessimistic about the short-term market prospects, they can continue to hold positions in the spot market by selling stock index futures, while locking in profits and transferring risks.

There are many benefits of buying and selling stock index futures that cannot be obtained by buying and selling individual stocks. Individual investors are often worried about the difficulty of stock selection, without insider information reference and full and comprehensive technical analysis and fundamental analysis; Compared with institutional investors, it is also at an absolute disadvantage in terms of funds. Therefore, it is a good choice to obtain the average profit synchronized with the market, and its specific method is securities indexation. Buying and selling stock index futures is equivalent to securities indexation, which is in sync with the market; In addition, buying and selling stock index futures also disperses the risk of individual stocks, and really does not put eggs in one basket.

Individual investors want to trade stock index futures. First, they should choose a reputable futures brokerage company to open a personal account. The account opening procedure includes three aspects. First of all, after reading and understanding the risk statement of futures trading, they should sign the statement. The second is to sign a futures brokerage contract with a futures brokerage company to obtain the customer code; The third is to deposit the deposit for opening an account, and you can place an order for trading after opening an account.

Different from spot stock trading, stock index futures trading implements margin system. Assume that the margin of stock index futures contract is 10%, and the value of each point is 100 yuan. If you buy a primary stock index futures contract at 1500, the contract value is150,000 yuan. The deposit is 15000 yuan multiplied by 10%, which is equal to 15000 yuan. This deposit is the customer's performance bond and must be paid as a position guarantee. If the futures index of the next day rises to 1550 points, the customer's performance bond is 15500 yuan, with a profit of 50 points and a value of 5000 yuan. The profit and loss will be settled on the same day, and the 5 thousand yuan will be transferred to the customer's fund account after the settlement on the same day. This is the daily debt-free settlement system. Similarly, if there is a loss, it must be settled on the same day.

The main factors affecting individual investors' participation in stock index futures trading are contract value and standardization of futures market. The greater the contract value, the fewer individual investors will participate. The standardization of the market makes the risk of non-market smaller, which will improve the enthusiasm of investors to participate in futures market transactions.

How to use stock index futures for risk management

With the approach of China's stock index futures products, investors also need to deepen their understanding of this product. Many investors still think that stock index futures are just a highly leveraged speculative tool. If stock index futures are just a speculative tool, how can we explain that in the history of global stock index futures products, some products are well received by investors, and the trading volume is increasing day by day, while some products are rarely interested after they are launched?

Stock index futures is first and foremost a risk management tool. Hedging function is the primary function of stock index futures, while speculation and arbitrage are only auxiliary functions. It is precisely because of this that people like S&; P500 index futures and euro DJ-STOXX50 index futures are tracked by a large number of investment funds, which aim at preserving the value of day trading's corresponding index futures. The trading volume of these two products is increasing day by day.

So how do ordinary investors use stock index futures to manage the risk of stock investment? First of all, investors should confirm that the stock they buy is one of the constituent stocks of the underlying index of stock index futures. Among the nearly 160 stock index futures products in the world, the underlying indexes of most products are component indexes, and only a few products are composite indexes, such as Taiwan Province Stock Exchange's weighted composite index futures of Taiwan Stock Exchange and all ordinary stock index futures of Sydney Stock Exchange. It is considered that the index futures launched for the first time in China choose the constituent stock index as the target, and will not choose the Shanghai Composite Index or Shenzhen Composite Index as the trading target.

If the first product is SSE 50 index futures, investors must confirm that the stock they buy is one of the constituent stocks of SSE 50 index if they want to use this product for risk management of stock investment. Of course, if the stocks held by investors are not the constituent stocks of the SSE 50 Index, they can also use the SSE 50 Index futures for risk management, but the effect is much worse.

Secondly, investors should be able to use some analytical indicators in stock investment software. These indicators mainly include volatility, yield and correlation. If investors hold multiple stock portfolios, it is necessary to calculate the volatility and corresponding returns of the stock portfolios in the past period, the volatility and corresponding returns of the underlying index in the past period, and the correlation between the stock portfolios and the underlying index. Only in this way can investors have a quantitative grasp of the relationship between the stock portfolio and the underlying index.

If the investor calculates that the correlation coefficient between the stock portfolio and the underlying index is 0.9, it shows that the fluctuation of the stock portfolio held by the investor is closely related to the fluctuation of the SSE 50 Index.

In this case, if investors expect that the SSE 50 index will fall in the future, but are unwilling to sell because of the high annual dividend yield of their stock portfolio, then investors can sell an appropriate number of SSE 50 index futures to avoid the phenomenon that the stock portfolio will be affected at the same time due to the decline of the index.

Third, investors need to work out how many index futures they need to sell under the guidance of professionals in securities or futures companies. Although most investors know how to sell stock index futures to avoid the systemic risk of market decline, it is difficult for most investors to calculate how many stock index futures to sell. In this case, investors can consult the professionals of their securities or futures companies.

Finally, investors need to understand the margin and daily debt-free settlement system of stock index futures trading. Since stock index futures are settled by margin financing and securities lending, there is no debt every day. If investors adopt the hedging strategy of selling stock index futures, they must prepare appropriate funds as a deposit.

Under normal circumstances, the trading margin requirement of securities firms is the lowest, which is assumed to be 10% of the value of stock index futures contracts. If the value of a stock index futures contract sold by investors at that time was 654.38+10,000 yuan, then investors should pay at least 654.38+10,000 yuan as trading margin. However, just preparing these funds is not enough. If the index does not run in the direction expected by investors, investors will lose money on futures contracts that hold selling positions.

For example, the index rose by 2%, investors lost 2,000 yuan, and the trading margin was only 8,000 yuan. The brokerage company will call you and tell you that you need to pay a deposit of 2200 yuan, because the contract amount at this time is 654.38+002 million yuan. If the deposit is not paid, the brokerage company will force the liquidation of its position. Then investors don't have insurance policies. Even if the market really falls in the future, you can only accept the reality of stock portfolio loss!

Stock Index Futures: Insurance for Stock Investors

At present, the research on deposit insurance system is gradually coming into public view, and even getting the attention of the state. Since all deposits need insurance, do you want to invest in the stock market?

According to statistics, the return on investment in China stock market is less than the deposit interest rate of banks in the same period. The stock price fluctuates with the company's performance every day, and investors may lose their money if they are not careful. It can be seen that investing in the stock market requires insurance. However, what is the mechanism of stock market insurance? Who can provide this kind of insurance? What's the rate of this insurance? ..... These issues must be the most concerned issues for investors in China stock market.

How to use stock index futures to hedge?

Generally speaking, the hedging function of stock index futures can be divided into long hedging and short hedging. For most investors, because you hold a stock portfolio and you are worried that some policy factors will bring systemic risks to the portfolio, your portfolio will suffer losses. And you don't want to sell your stock portfolio, because the cash dividend rate of these companies is higher than the bank deposit rate. You just want to avoid this unstable investment period. In this case, stock index futures can help you choose a long-term hedging strategy.

Overseas futures exchanges generally have stock index futures contracts with different maturities, such as 1 month, 2 months, 3 months, 6 months, 9 months, 12 months, etc. If you think this unstable investment period is three months, then you can sell the corresponding three-month index futures contract according to the market value of your stock portfolio.

Now you not only hold the long position in the stock portfolio, but also hold the short position in the stock index futures. Since the stock index futures contract will converge to the spot index when it expires, no matter where the stock index price fluctuates, your portfolio will be long and short, ensuring the risk-free return of holding the portfolio. Because, if the stock index falls as you expected, then your stock portfolio has suffered losses. or vice versa, Dallas to the auditorium In short, stock index futures help you choose a long-term hedging strategy and buy an insurance similar to auto insurance.

At present, stock index futures are provided by commodity futures exchanges. The reasons are as follows: on the one hand, commodity futures exchanges regard stock index price fluctuation and commodity price fluctuation as the same kind of things, and naturally introduce the futures trading mechanism to avoid commodity price fluctuation into the stock market, thus revolutionizing the insurance technology and products in the stock market. On the other hand, commodity futures exchange has always been the counterparty of commodity futures buyers and sellers, and has long-term rich experience and mature methods and technologies in controlling the credit risk of trading between buyers and sellers, thus ensuring its ability to act as the central guarantor of stock index futures buyers and sellers.

Compared with the auto insurance rate, the insurance premium paid by investors to buy and sell stock index futures is much lower, generally at the level of two or three ten thousandths. This is much less than the transaction cost of the stock market. However, some people will object that the stock market is an investment market, and the transaction cost paid is insignificant relative to the long-term return of investors. However, the stock index futures market is a risk management market, which is essentially a "zero-sum" game market. If you pay the fee, it will become a "negative sum" game market. Why should investors be willing to pay this part of the cost?

An intuitive explanation is that the hedger bought a policy after paying this part of the fee, so he is willing to pay this part of the fee. However, according to the research, on average, the average income of hedgers will be higher than the transaction costs. In fact, unskilled speculators pay this part of the cost for hedgers and skilled speculators. Therefore, the hedger got a free insurance.

In short, investors in the stock market can be insured through a cheap product, namely stock index futures. With the stock index futures market, the investment environment of China stock market investors will be improved to some extent.