digital currency coming soon- Top Featured

First, the basic position of the stock capital marketSecond, the dependence of derivative financial products on the stock market1. The economic barometer function of the stock market icon

Derivative financial products, such as futures, option icon, funds, insurance, etc., are financial products derived from basic assets such as stocks and bonds. Their value is derived from the price changes of the underlying assets. For example, stock option is a derivative product based on stock, and its value depends on the price fluctuation, maturity time, volatility and other factors of the underlying stock. If the stock market does not rise and the stock price lacks fluctuation, then the value of stock options will be difficult to be reflected. Moreover, derivative financial products themselves have high risks, and their price changes are often more violent than the basic assets. When the stock market does not rise, the high-risk characteristics of derivative financial products will be amplified, and investors may suffer huge losses.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.2. The relationship between the market base of derivative financial products and the stock market.

Stock capital market: if the stock price base does not rise, all other derivatives will be zero.First, the basic position of the stock capital marketFor investors, the stock market provides a way to directly participate in enterprise growth and profit sharing. When buying stocks, investors actually become shareholders of the enterprise and have the right to share the dividend icon and capital appreciation of the enterprise. If the stock market does not rise, investors' income will not be guaranteed, which will weaken investors' confidence in the whole financial market.