IF 1909 is a stock index futures that tracks the Shanghai and Shenzhen 300 Index. When trading stock index futures, both parties buy and sell standardized futures contracts with stock price index as the subject matter, and both parties agree to trade the subject matter index on a specific date in the future according to the size of the stock price index determined in advance. After the stock index futures expire, both parties settle the price difference by cash delivery.

For investors, stock index futures have the following functions:

(1) Avoid investment risks. If investors think that the stock market prospects are not good, they can trade stock index futures and lock in the book profit of stocks by shorting futures.

(2) arbitrage. With the change of time, the basis of stock index futures and spot index will inevitably converge to zero on the delivery date. Therefore, using this principle, investors can arbitrage through stock index futures and the stock market, thus obtaining risk-free returns.

(3) Reduce the volatility of the stock market. Stock index futures can reduce the daily average amplitude and monthly average amplitude of the stock market and restrain the irrational fluctuation of the stock market.

(4) Enrich investors' investment strategies. Financial derivatives such as stock index futures provide investors with risk hedging tools, enrich investment strategies and provide investors with diversified wealth management tools to help them achieve long-term stable returns.