Category: Money tips Release Date: 2007-03-18
What is stock index futures
Stock index futures stock index futures short, is a stock price index as the underlying financial futures contracts.
The nature of stock index futures
Stock index futures and commodity futures in addition to regular delivery maturity are different from things, basically there is no essential difference.
Assumes that the current of a stock market index is 1,000 points, that is, the current index of spot market "price" is 1000 points, now has a "12 expires at the end of this market index futures contracts." If most investors bullish on the market, it may present the index futures prices are already at 1100 o'clock. If you think that by the end of December when the index of the "price" will be more than 1,100 points, you will buy the stock index futures, that is, when you are committed to the end of December, to 1,100 points, the "price" buy it "The market index." When this index futures continued to rise to 1150 points, you have two choices, or continue to hold the futures contract, or is a current new "price" (ie 1150 points) to sell the futures, then, you have open positions, and and received a 50-point gains.
Of course, in this index futures before the expiration of its "price" may also fall, you can also continue to hold or open positions flesh.
However, when index futures expires, no one can continue to hold, because when the futures have become a "spot", you must be committed to the "price" to buy or sell the index. Depending on your futures contracts held by the "price" and the current actual "price" the difference between, Duotuishaobu.
The role of stock index futures
Investors in the stock investment risks can be divided into two kinds: one is the stock market systemic risk that all or most of the stock price fluctuation risks; the other is the risk of individual stocks, also known as non-systemic risk. Through the investment portfolio, that is, purchase a variety of risks of different stocks can be better to avoid non-systematic risk, but can not effectively circumvent the entire stock market decline caused by systemic risk.
The 20th century, 70 years later, the Western countries the increasing stock market volatility, stock market investors to avoid risks of the system requirements are more urgent. People began to try to transform into a stock index futures contracts can be traded and used it all the stock to hedge in order to avoid systemic risk, so stock index futures came into being.
The use of stock index futures to hedge the principle is based on the stock index and stock price movements in the same direction the trend in the stock market and stock index futures market to make the opposite operation, in order to offset the risk of price movements.
