Category: Money tips Release Date: 2006-10-14
As Singapore in September listed FTSE Xinhua A Share Index Futures announcement, the domestic launch of index futures is also accelerating the process. In the near future, the market will have a new investment products, namely, stock index futures.
The emergence of stock index futures, investors are able to use more of the investment strategy, with the attendant also generate more investment opportunities. For example, investors can hold in bold blue chips at the same time, sell part of the index futures, so that investors will be able to get blue-chip companies a higher annual dividends, but do not have to worry about tape holding down spreads arising from the loss.
Again, investors can buy money-market funds at the same time, holding part of the index futures position, so that, when properly take stock Quotes, investors do not redeem money market funds spent to buy stocks. Again, if investors are not optimistic about the market outlook, you can sell index futures, do not fall for the market can not profitably sigh so.
Then Index Futures Index ETF and investment risks of what is different? Investors to invest in index futures how to control the risk?
On the general risk is concerned, investing in index futures and investing in index ETF is no difference, because both the market risks are from the volatility of the underlying index. However, margin trading index futures is used, so the risk of investment in index futures index ETF's at a different, mainly from the leverage effect of futures and daily non-debt clearing system.
For example, if the current index is 1000 points, the index ETF's price is 1 yuan, index futures offer is 1000 points, the contract multiplier of 1 yuan, trading margin was 10%.
1000 yuan of assets investors can be used for indexation of investment, he has two choices: First, by using all of the 1,000 yuan to buy 1,000 copies of ETF, the second is to 1,000 yuan as a deposit transaction to purchase 10 index futures. If the index fell 900 points, then the first option, investors lost 100 yuan; while the second option, investors lost a total 1,000 yuan of funds. If investors can not be an additional 1,000 yuan as a trading margin, then the investor held 10 futures contracts will be forced liquidation exchange. In other words, even if the next day after the bombs back to the underlying index, the index can not be given to those who rallied the benefits, because his position had been forced open positions, and the game is over.
Therefore, the risk of a different index futures index was mainly the risk of ETF products trading system by the decision. Before investing in index futures, investors must be soberly aware of this.
Recognize its leveraged transactions and daily non-debt settlement characteristics, investors invest in index futures to control the risk of actually controlling the character of its own greed transactions. According to the above example, if investors only 100 yuan as a deposit to purchase an index futures transaction, the remaining 900 yuan to buy money market funds, then the index dropped to 900 points, investor losses and the loss to buy ETF is the same as . More importantly, investors can redeem 900 yuan money market funds as additional margin to ensure that the position will not be forced to hold open positions.
Devil and Angel live in the walls of the compound, the index futures is a devil or angel investors, trading in the character of the whole being.
