Theoretically, the futures market and the stock market are two independent markets.

However, futures are actually related to stocks. For example, cotton is an important raw material for cotton textile enterprises, and the fluctuation of cotton futures price also reflects the price of cotton as raw material. For listed companies with cotton as raw materials, their share prices will also be reflected.

Therefore, there is a certain correlation between futures and the stock price trend of related listed companies.

Because futures have the function of price discovery, stock index futures usually rise and fall before the stock market, stock index futures and treasury bonds futures will react before the stock index, and commodity futures will react before the stock sector.

So for us, if we want to know the future market of the stock, we can judge it with the help of stock index futures.

At the same time, the short selling mechanism also gives stock market investors an additional hedging tool.