Participants in the derivative financial commodity market, including hedgers icon and speculators, their trading strategies largely depend on the trend of the stock market. Hedgers hedge the risks in the stock market by derivative financial products. If the stock market does not rise, their hedging needs may decrease. Speculators hope to profit from the price fluctuations in the stock market and the derivative financial commodity market. If the stock market lacks upward momentum, speculators will also reduce their participation in the derivative financial commodity market.According to the research report of financial institutions, the trading volume of derivative financial commodity market usually drops sharply during the period of stock market downturn. This is because investors' income expectations of derivative financial products have decreased, while risk aversion has increased. For example, during the global financial crisis in 2008, the stock market plummeted, and the markets of derivatives such as futures and options also fell into chaos. Many investors suffered heavy losses because of the transactions of derivatives.1. The nature and risks of derivative financial products
1. The economic barometer function of the stock market iconSecond, the dependence of derivative financial products on the stock market2. The function of capital accumulation and resource allocation in the stock market.
First, the basic position of the stock capital market1. The economic barometer function of the stock market icon1. The nature and risks of derivative financial products
Strategy guide
12-13
Strategy guide
12-13