Modern Technology Of Stock Index Futures Trading

The stock index futures is a category which was bom very lately in financial futures area. The stock index futures trading has been attached importance to increasingly by varied investors since Kansas Futures Exchange released Value-line Composite Index Futures on February.,1982. Trading scale has enlarged quickly and varieties added have gotten more increasingly. The main purpose of stock index futures trading is hedge, which is a tool can transfer risks for the investors who hold stock asset and who will sell stock. Nowadays more investors and investment institutions with varied directions are wild about stock index futures speculation and arbitrage, and the modern financial tool is showing its power all over the world.Based in spot-futures parity theorem, the paper sums up and analyses the trading technology and configurating assets technology of stock index futures trading modes with some examples. I hope that it can be good for designing our country's stock index futures project.Chapter One introduces the history and the fundamentals of stock index futures by stock market risk theory, and points out that investors can transfer the risks or speculate by trading. In next part paper analyses the feasibility of building a stock index futures market in China with combining possible investment main bodies in our country.Chapter Two introduces the trading technology of hedge which is the most basic in stock index futures. The first part introduces the fundamentals of hedge; the second part enumerates the steps to build a hedge; the third part analyses the trading technology of long hedge, short hedge and cross hedge with some examples, respectively; the fourth part deduces the spot-futures parity theorem with analyzing cash income of hedge, and the theorem also is the main basis to research stock index futures trading; the fifth party gives the method of confirming the fittest number ofhedge contracts.Chapter Three introduces the technology of stock index futures arbitrage. The arbitrageurs' analysis is dynamic and is based on basis changing. The fundamentals of the three types of arbitrage tradings are similar to the commodity futures.Chapter Four analyses the technology of index arbitrage. The first part introduce the fundamentals, and it points out that index arbitrage is an investment actually that investors use the deviation between actual price and theory price to profit; the second part expatiates on the technology and characters with some cases; the third part introduces three types of arbitrage cash.Chapter Five introduce the speculation of stock index futures. The first part generalizes its fundamentals and characters, and it points out that speculation is an effective artifice of investing in stock market indirectly; the part two sums up the basic speculations; the third part analyses long speculation and short speculation, respectively.Chapter Six introduces the technology of asset configuration; The first part generalizes its fundamentals and methods, and it points out index investment is build on characters of stock index futures contract and portfolio theory, and used by some great financial investment institution; the third part analyses the asset configuration technology in international markets...