From the formula, the premium of futures represents that the futures market price is higher than the spot market price, while the discount of stock index futures means that the spot market price is higher than the futures market price, which is a normal phenomenon in the futures market. Theoretically, futures and spot prices are the same, but because the futures market is a secondary market, the price changes more, which also produces premium and discount.
Take the futures premium as an example. If a subject matter (such as rebar) has a futures premium, the futures market price is higher than the spot market, indicating that the current futures market price is on the high side, and market investors are optimistic about the future price increase of rebar. Similarly, if there is a discount, it shows that the market is bearish on the future trend of rebar.
Tips:
1. The above instructions are for reference only and do not make any suggestions;
2. All investment in financial derivatives is risky, which requires investors' financial risk management ability and is not suitable for investors without professional financial knowledge. In addition to basic financial knowledge, investors should also control their risk tolerance and not invest blindly.
Reply time: 2021-11-30. Please refer to the latest business changes announced by Ping An Bank in official website.