Stock index futures are based on the CSI 300 Index. It is a virtual underlying that can be delivered in cash or in a basket of index constituents.

For the futures of a single constituent stock, due to the low representativeness and insufficient breadth of participants, the cost of implementation is relatively high and therefore impractical. The corresponding financial derivatives are generally relatively simple to operate. Simple warrants, mainly call warrants or put warrants, are suitable for retail investors to invest, speculate or maintain value.

The CSI 300 Index, due to its large number of constituent stocks, can fully reflect the market on the one hand, and can accommodate large-scale funds on the other hand. Therefore, it is more suitable for the investment, arbitrage and value preservation of larger-scale institutions. operate.

To sum up, the CSI 300 is a futures formed by the sum of 300 constituent stocks. For each constituent stock, investors can conduct hedging operations through warrants or margin trading.