Low water, also known as discount, means that the futures price is lower than the spot price. Take the CSI 500 stock index futures index as an example. If the CSI 500 index is higher than the futures index, this situation can be called the futures index is low or discounted.

You know, futures refer to a special product. It determines the current price and will be settled on the future contract expiration date (that is, the settlement date at the end of each month). On the settlement date, the futures price should be equal to the spot price, and the spot index should be equal to the CSI 500 index, so the current price of the futures index is basically an estimate of the closing price of the CSI 500 index on the future maturity date. Therefore, if the futures index is low, it means that investors estimate that the Hang Seng Index will fall in the future and the market outlook will be weak.