The trading mechanism of stock index futures adopts leveraged trading, which allows investors to participate in larger-scale transactions with less funds. Short selling is short selling, the essence of which is to sell a certain contract in the futures market in order to buy it at a lower price at a certain time in the future and earn the difference. Because the trading mechanism of stock index futures allows short selling, investors can profit from the market decline by selling stock index futures contracts.
2. The application of short selling strategy can effectively reduce investment risk.
The stock market has ups and downs, and the trading mechanism of stock index futures can make profits by shorting when the market falls. Taking appropriate short-selling strategies can effectively reduce investment risks and increase income potential. Investors can choose appropriate short-selling strategies according to their risk preferences and market conditions, such as "short on rallies" and "short on trends".
3. Short-selling operations need to be cautious, and risks and benefits coexist.
Although short-selling operation can gain benefits in the market decline, risks and benefits coexist. Short-selling operations need to be cautious, and investors should master full market sentiment and changes to avoid blindly following the trend. In addition, it is necessary to pay attention to the margin and transaction cost during the short-selling operation, pay attention to the market situation at any time, and adjust the trading strategy in time. Only with rational investment decision-making and risk awareness can we maximize the return by using the short-selling mechanism of stock index futures.