Category: Money Tips Date: 2006-06-05
Because a considerable number of masters fought in the futures market simulation game, Li Jianhua reminder: "stock-index futures compared with the stocks, there are distinctive characteristics of the stock market had anti-expert."
Features 1: futures contracts can not be held indefinitely
After buying the stock can continue to hold, under normal circumstances, the number of shares will not be reduced. But the stock index futures have a fixed maturity date, maturity should be delisted. A lot of trading stock index futures can not be the same as stock trading, trading after the matter, and must pay attention to the contract expiration date in order to determine the position to settle in advance, or wait for the contract expires, or positions to the next month.
Features 2: futures contract is traded on margin,
Use of stock index futures contracts traded on margin, generally pay the contract as long as the face value of about 10% -15% of the funds could be a sale and purchase agreement in this regard to improve the profitability of space, but also increase the risk on the other hand, it must be a daily Settlement gains and losses.
Buy stocks after sell before the book gains and losses are not settled. However, a different stock index futures trading day after the settlement price in accordance with the contract for clearing of the holders, book profits can ask to go, but before opening the next day carrying a loss of complement (ie, margin).
Features 3: futures contracts can be short-selling
Stock index futures contracts can be very easy to sell short, and so the price drop and then buy. Equity Securities Lending transactions may be short, but the relatively large degree of difficulty. Once the short sale price does not drop, after inflation, investors will also face losses.
