Introduction:
Sell hedging is used to protect the future decline of stock portfolio price. Under this kind of hedging, when the hedger sells the futures contract, it can fix the future cash selling price and transfer the price risk from the holder of the stock portfolio to the buyer of the futures contract. One case of selling hedging is that investors expect the stock market to fall, but ignore the sale of their stocks; They can short stock index futures to make up for the expected loss of holding stocks.
The emergence of classified index futures may make selling hedging easier to manage than in the past, because investors can control certain market risks. This plays an important role in investing in stocks closely related to a certain sub-index.