Stock index futures can be used to reduce or eliminate systemic risks. The hedging of stock index futures can be divided into selling hedging and buying hedging. Sell hedging is the hedging of stock holders (such as investors, underwriters, fund managers, etc.). ) sell in the futures market to avoid the stock price falling; Hedging refers to the hedging of individuals or institutions that intend to hold shares (such as companies that intend to subscribe for shares and merge with another enterprise). ) to avoid rising stocks in the futures market. Using stock index futures to preserve value

The steps are as follows:

First, calculate the total market value of the shares held.

Second, calculate the number of contracts required for hedging according to the futures price in the maturity month.

Third, the maturity date is closed at the same time to achieve hedging.

The methods of using stock index futures for speculative trading are: the principle of following the trend.

The risk of trend trading comes from the loss caused by the position established by investors, which is contrary to the actual price. This loss can be continuously expanded, so there are several principles that must be adhered to in trend trading:

1) Follow the trend, pay for the rising trend, sell for the falling trend, fluctuate the market range or leave the market to wait and see.

2) Strictly set the stop loss. The upper limit of general stop loss is 5% or key technical position. Stop loss is the survival foundation of speculative market.

3) Control the opening of positions, and generally take 30% of the funds as the basic opening. In this way, there will be enough funds to buffer the reverse market and take countermeasures.