Stock index futures is a financial derivative. In the course of trading, investors buy and sell stock index futures contracts. The price of these contracts is based on the index of a specific stock portfolio in the stock market, such as the Shanghai Composite Index or the Nasdaq Index. Investors can profit from stock index futures contracts or hedge stock market risks.

In the stock market, the trading volume of stock index futures is increasing. Investors can diversify their portfolios through stock index futures. The trading mode of stock index futures is more flexible, and investors can invest through long-short two-way trading. For example, if investors think that the market share price will rise, they can buy stock index futures to get a return on capital.

In addition to obtaining financial returns, investors can also use stock index futures to hedge stock market risks. By buying and selling stock index futures for hedging, investors can reduce the volatility of stock portfolio. This risk management tool is especially suitable for long-term stock investors to help them reduce risks in uncertain markets.

Generally speaking, stock index futures trading is a good investment opportunity and a good risk management tool for people who know the market. Investors need to handle the risks in stock index futures trading carefully and fully understand their investment strategies and objectives in order to maximize investment returns.