1. The two-way nature of futures trading: One of the biggest differences between futures trading and the stock market is that futures can be traded in both directions, and futures can be bought long or short. When prices rise, you can buy low and sell high, and when prices fall, you can sell high and cover low. You can make money by going long, and you can also make money by going short, so there is no bear market in futures. (In a bear market, the stock market will be depressed but the futures market will remain prosperous and the opportunities will remain.)

2. The cost of futures trading is low: countries do not impose stamp duties and other taxes on futures trading, and the only cost is the transaction procedure. fee. The current procedures of the three domestic exchanges are around 2-3% of the transaction amount. Including the additional fees of brokerage companies, the unilateral handling fee is less than 1% of the transaction amount. (Low fees are a guarantee of success)

3. Leverage effect of futures trading: The principle of leverage is the charm of futures investment. Trading in the futures market does not require full payment of funds. Currently, domestic futures trading only requires a 5% deposit to obtain the right to trade in the future. Due to the use of margin, the original market price was magnified by more than ten times. Let’s assume that on a certain day, the price of copper reaches its upper limit (the upper limit in futures is only 3% of the previous trading day), and if we do it correctly, our capital profit rate will reach a huge 60% (3% ÷ 5%), which is 6 times higher than the stock market’s daily limit. times. (Only when you have the opportunity to make money)

4. "T+0" trading opportunities double: Futures are "T+0" transactions, which maximize the use of your funds. After grasping the trend, you can make money at any time. Trade and close positions at any time. (Convenient entry and exit can increase the security of investment)

5. Futures are a zero-sum market but greater than a negative market: Futures are a zero-sum market, and the futures market itself does not create profits. In a certain period of time, regardless of the transaction fees for the entry, exit and withdrawal of funds, the total amount of funds in the futures market remains unchanged, and the profit of a market participant comes from the loss of another trader. When the stock market entered a bear market, market prices shrank significantly, and dividends were meager. There was no short-selling mechanism for the state and companies to absorb funds. The total amount of funds in the stock market will experience negative growth for a period of time, and the total profit will be less than the loss. (Zero is always greater than a negative number)

Comprehensive national policies, economic development needs and the characteristics of futures determine that futures have huge room for development. The full name of stock index futures is stock price index futures, which can also be called stock price index futures and futures index. It refers to a standardized futures contract with the stock price index as the subject matter. The two parties agree that on a specific date in the future, they can follow the predetermined stock price. The size of the index allows you to buy and sell the underlying index. As a type of futures trading, stock index futures trading has basically the same characteristics and processes as ordinary commodity futures trading.