The full name of stock index futures (SPIF) is stock index futures, which can also be called stock index futures and futures index. It refers to the standardized futures contract with the stock price index as the subject matter. The two parties agree to buy and sell the underlying index according to the size of the stock price index determined in advance at a future date, and settle the difference in cash after the expiration. As a type of futures trading, stock index futures trading has basically the same characteristics and processes as ordinary commodity futures trading. Stock index futures are a kind of futures, which can be roughly divided into two categories, commodity futures and financial futures.

Stock index futures belong to financial futures. There are three kinds of stock index futures listed in China, namely Shanghai and Shenzhen 300 Index, CSI 500 Index and SSE 50 Index. This kind of futures has a relatively high threshold for opening an account when investing. For example, a new account needs 500,000 yuan for capital verification, and you have to go to the sales department for on-site audit. Only after passing the examination can the trading authority be opened. But it is undeniable that compared with commodity futures, it has more profit opportunities, so it is favored by investors.

Stock index futures, like commodity futures, will have opening, closing and delivery. So how is stock index futures delivered? Different from commodity futures, the investment target of stock index futures is the stock index, such as the Shanghai and Shenzhen 300 Index mentioned at the beginning of the article. The investment target of this variety is the Shanghai and Shenzhen 300 Index. For example, if the Shanghai and Shenzhen 300 Index rises, then the futures of the Shanghai and Shenzhen 300 Index will also rise. It belongs to the abstract subject matter, so it can't be delivered with commodities like commodity futures.

Domestic stock index futures are all delivered in cash. On the delivery date, the empty party and the multi-party do not need to use physical objects, or they do not need to use stock portfolios, and each contract will be automatically closed on the delivery date. At the time of delivery, the profits and losses of multiple parties and empty parties are calculated according to the delivery settlement price, and finally the obtained profits and losses are transferred to the margin account of the profit and loss party to complete the delivery.

There are too many investment targets involved in stock index futures. For example, there are 300 stocks in the Shanghai and Shenzhen 300 Index, so it will be particularly troublesome to deliver directly with the stock portfolio, while it will be much simpler and more convenient to deliver in cash. Therefore, the exchange stipulates that stock index futures should be delivered in cash.