Data:2009-12-12 2:34
Category: Money tips Release Date: 2007-07-14
Speculators only hope to hold a position in the market, while hedging those aimed at reducing the risks they face. To give a simple example: Suppose that investors hold a limited period of the stock sale, and this is precisely the stock in Shanghai and Shenzhen 300 Index's constituent stocks, that is, he knew that he will sell at a certain time the hands of This stock, then he can be held in Shanghai and Shenzhen 300 index, short index futures contracts to hedge his risks. This is a short hedge.
If the stock price drop, investors sell the stock when the loss will occur, but will make profits in the futures of the short; the other hand, if the stock price increases, investors sell the stock will be profitable, but the futures of the shorts will be lost. In fact, with hedge does not necessarily give investors more of the excess proceeds from another professional point of view is "does not necessarily improve the overall financial performance", recognizing that this point is very important. In fact, we can expect stock index futures contracts to hedge approximately 50% of the time there will be losses. So, here I want to emphasize that the stock index futures to hedge only to identify by making the results more as a way to reduce risk.
