Category: Money tips Release Date: 2006-08-31
Stock index futures first appeared in 1929 ~ 1933 experienced a major economic crisis in the United States after the Kansas Agricultural Stock Exchange, after rapidly popular global capital markets, as of 2005, according to BIS statistics, stock index futures trading volume has become a global the largest financial derivative products.
No one can bring on this financial product whose value to turn a blind eye. Shanghai Stock Exchange as early as in 2002, the completion of a set of the introduction of stock index futures programs. But not through the approval of the SFC. Not long ago, the world's largest options exchange --- Chicago Board Options Exchange, the formal launch of China's stock index futures (hereinafter referred to as stock index futures), which is the first China-based company's stock constituted 16 of the Chicago Futures Exchange Chinese stocks the number of futures contracts; Singapore Exchange has recently been feverishly planning to introduce Chinese A share index futures; Hong Kong Exchanges and Clearing Limited has also followed similar products available. Overseas Chinese stock index futures have been offering the news has undoubtedly accelerated the introduction of our own domestic A-share market index futures pace.
Stock index futures finally drawing near. So how do we get to know it?
In fact, investors have experienced in terms of the warrants, stock index futures is not a how complicated things. It is a bit like gambling. Suppose there are two people: A and B, A that of eggs to Beijing after three months rose to 5 cents a, B can not be felt after three months rose to the price of this egg, no one who Shuofubuliao So Da Huoer spent some money to find someone when the notary, signed a protocol that three months after the B to 5 cents the price of selling eggs to the A. Such A and B, respectively, from the point of view, this agreement is cost-effective, notaries are also happy, because he had money.
Stock index futures is almost like this in the stock index futures which the stock index is the egg, egg index of Change is a change in the price. The Exchange and the agent is the intermediary fees earned legalization.
You might think that three months after the two idler in order to bet the price of eggs, what does that mean? Can not create value for society.
â—?Hedging and value of the discovery
But if B, then opened a chicken farm, meaning is not the same.
If the B opened a chicken farm, but yields are very good this year, he might be worried about other people's output also makes Beijing a good supply of eggs to increase market egg prices led to a loss to himself, once he and A signing of such an agreement, he can feel at ease for each egg 5 Mao's prices. This ability to protect their own values of stock index futures is the most important function: to hedge. But this time their own hands to protect the value of the stock.
On the other hand, B can also observe the market price of such contracts to determine the possible future price of eggs. If we are all in accordance with each of the price of eggs, 8 cents to sign the agreement, then said that everyone's view on the future market egg prices is very high. By the same token, investors can also judge a similar stock market, to advance layout, adjust their investment. This is the value of stock index futures discovery.
â—?Small is Big
If the A, B of the agreement bet of 500 eggs, in order to prevent one party defaults, a notary public will charge a deposit in accordance with the ratio. Such as the collection A10 million, so from the A's point of view, is equivalent to only 10 yuan money being spent has over 500 eggs.
Index futures also adopted a similar deposit system, to pay a certain amount of margin can be traded. Suppose HSI at 15,000 points, according to the Hang Seng Index Hang Seng Index futures and about 50 dollars then the value of each point, an HSI value of the contract for the 15000 × 50 = 75 million Hong Kong dollars, the deposit (bond) only about 4.8 million. If, the Hang Seng Index rose 1%, or 150 points, you can profit of 7500 Hong Kong dollars, the return reached 15.6%. Hang Seng Index futures provide investors with more than 10-fold return on the lever.
â—?short channel
In the above example of that, if the egg prices rose, A to make money; if prices fall, then B to make money.
For a long time in the domestic stock market can only do A, that is only by holding the shares and shares rose in order to benefit from. The index futures fell on the provision of a channel can also be profitable. City investors can fall when the short selling index futures profitable use. Example, investors expect the stock will fall, you can buy one to see the empty futures contracts. Sure enough, if the Hang Seng Index fell 1%, investors will be able to benefit from. Practice, investors often use this function to unwind positions in the spot market. For example, if investors hold equity funds positions at the same time, we are sitting down, making index funds a loss of 1%, but the profitability of stock index futures can compensate for this loss.
â—?Zero-Sum Game
In the above example of that inside, regardless of changes in the price of eggs, A and B will always have a loss was incurred. Using game theory jargon, It was a zero-sum game.
Actual transactions in the stock index futures which are often as well. Have of winning there is to lose money. Particularly because of the special nature of margin trading, its higher risk. If the index fell 1 percent, investors could stand to lose is 10% or even higher, and in accordance with trading rules, the exchange needed to calculate the daily settlement of the adequacy of margin accounts, which also involved in stock index futures risk controls a very high demand.
Therefore, the information in the stock market game at a disadvantage in the capital disadvantage small and medium investors to be prudent investment in stock index futures, it is best to view it as a preservation tool. It's like that game opened a farm in B, he may be a loss, but he has been the exact nature of the risk of weakening.
