Category: Money Tips Date: 2006-09-18
Brokerage and fund management companies to avoid risks through hedging
As the Shanghai Futures Exchange, the completion of financial derivatives after the first launch types of transactions, stock index futures (the stock index futures) available during the year is almost no longer suspense. Many domestic investors eager for this new thing.
Agencies hedge against the risk of
Stock index futures, like other futures varieties, like, you can sell the difference to the use of bid speculation.
Such as brokerage and fund management companies such as intermediaries, you can trade stock index futures to hedge to effectively circumvent the stock market systemic risk. When a stock broker in the underwriting at the same time, in order to avoid the risk of decline in the stock market in general, it can be pre-selling the corresponding amount of stock index futures contracts to hedge risk, lock in profits. The use of stock index futures to hedge the principle is based on stock index and stock price movements in the same direction the trend of the stock in the spot market and stock index futures market to make the opposite operation to offset the risk of price changes. The price of stock index futures contract is equal to a stock index points multiplied by the provisions of the price each and every point. A variety of stock index futures contract prices vary for each point, for example, the Hang Seng Index price of 50 Hong Kong dollars each point, namely, the Hang Seng index is reduced by one point, the long futures contract on each contract, investor losses 50 Hong Kong dollars, and the seller each Hong Kong dollar contract, earn 50.
If investors A in the June 16, 2005 757 points, the price of buying 10 stock index futures contracts, and assume that the margin charged by brokers on the basis of the exchange plus 2 percentage points, the actual value of the contract margin deposits in the 10% of the total capital investors, 113.55 thousand yuan, then the funds invested by the following formula:
Invest in stock index futures = unlocked the cells and flat-pointing when the number of sheets bought bits × × contract multiplier × Margin percentage = 757 × 10 × 50 × 0.10 = 37850 Yuan
A stock index futures contracts will be assumed to hold to August 23 with 810 points, the price of open interest to sell, and investors unlocked the cells and the total funds of funds accounted for only 1 / 3, then this level refers to futures trading, profit and loss according to the formula calculated as follows: Profit = (810-757) × 10 × 50 = 53 × 10 × 50 = 26500 Yuan.
Invested rate of return = (profit and loss / invest in stock index futures) × 100% = (26500/37850) × 100% = 70.01%.
Total capital gains rate = (profit or loss / total capital) × 100% = (26500/113550) × 100% = 23.34%
To circumvent the broad market downside risk, institutions are achieved through the stock index futures to hedge. If a stock held by institutional investors in Hong Kong, total market capitalization of 200 million Hong Kong dollars of the 10 listed stocks, at 13,000 points on the selling price of three copies of 3 months due to the Hang Seng Index Futures, that is, the stock has done more to see stock empty, two-way operation, to achieve risk-offset, which is hedging. Suppose the next two months, the stock market dropped sharply as expected, the investor holds the market value of shares from 200 million Hong Kong dollars devaluation of 1.55 million Hong Kong dollars, the spot market loss of 450,000 Hong Kong dollars. Then the Hang Seng Index futures also fell to 10,000 points, so that the investors in the futures market on unwinding way to buy three copies of the original contract, to achieve the unwinding of the futures market profit of 45 million Hong Kong dollars, the futures market offset the profit just the spot the market losses, a better realization of the hedge.
Individual investors with better skills re-entering
But some industry experts suggest that ordinary investors do not play index futures. Green Futures Ting-Ting Liu said that in foreign countries, people do stock index futures are not many retail investors through fund investments. Futures president of Shenhua Wang is said that ordinary people want to see more small animals and try not to participate. As the stock index futures in the home or a new thing, and is a high-risk investment tools, whether investors or managers need a certain expertise. Therefore, before the launch of stock index futures, stock index futures should be strengthened to disseminate knowledge and professional skills training to improve skills of investors stock index futures.
It is reported that the international community in carrying out the initial stage of stock index futures, often limit the individual investors involved in the market too much in order to reduce market risk and minimize its possible negative effects. Generally required to wait until conditions are ripe, experienced, after, and then gradually to small and medium investors, including foreign investors.
Our reporter Liu Baojiang
â–?intimate Tips
Acquire a warrant in hand and thought they
Futures investors have disclosed in the transaction, the stock index futures little difference with the other futures, there is futures of experience may be better to do index futures, there is no futures investment experience that can be bought with very little money warrants try, because the two technical skills, T +0 or less the same, and have fluctuated much more, psychological pressure and so on. Has just started when the stock index futures, try not to put too much money, must not be overnight, for the stop-loss must be strict.
