Because the distance of the signing month is different, the law of price change is also different. For example, the price in the delivery month is closest to the spot price, and the contract transactions after three or four months from the delivery month are the most.

Therefore, for the convenience of research, we take the form of "continuous" contract to observe. The "continuous month" here is not a fixed month, but always changes.

"Continuous next month" means that all recent contracts in the next month are continuous.

The so-called stock index futures, the abbreviation of stock price index futures, is a standardized futures contract based on a certain stock index. Buyers and sellers trade the stock index price level after a certain period of time. Stock index futures adopt margin trading system and debt-free day settlement system.

Margin trading has leverage effect, and at the same time it magnifies risks and benefits; Debt-free day settlement requires investors to always pay attention to their margin balance to avoid being forced to close their positions because of insufficient margin. Stock index futures are subject to T+0 trading, and buying (selling) on the same day can sell (buying) on the same day. Stock index futures contracts have an expiration date.

Before the contract expires, investors can close their positions and settle transactions in advance; After the contract expires, the open contract will be settled by cash delivery.

Extended data

Main functions of stock index futures

The main function of stock index futures is its risk aversion function.

The hedging function of stock index futures is realized by hedging transactions, and investors can reverse the operation in the stock market and stock index futures market to avoid risks.

The risk of stock market can be divided into two parts: unsystematic risk and systemic risk. For non-systematic risks, investors can usually adopt the way of diversification to reduce the impact of such risks to a lower level; But for systemic risks, it is impossible to avoid them by diversifying investment.

The introduction of stock index futures provides an effective tool for stock investors to hedge risks. Investors who are worried about the stock market decline can hedge the risk of the stock market decline by short selling stock index futures contracts, thus avoiding the systemic risk of the stock market.

Stock index futures also have certain asset allocation functions.

Because of the margin trading system, certain leverage and low transaction cost, institutional investors can use stock index futures as one of the tools for asset allocation.

In addition, the extent to which the market function of stock index futures plays depends on the rational use of investors.

References:

Baidu encyclopedia-stock index futures