More knowledge on investment and financing of China Merchants Securities
1、 Difference between stock index futures trading and warrants
1. The essence of warrants is call options, while stock index futures are futures products based on stock indexes. Therefore, their income structures are different.
2. Both stock index futures and warrants have leverage, but the principles of their application are different. Warrants reflect leverage in terms of pricing, while stock index futures reflect this in terms of margin trading system.
3. Stock index futures trading has the function of short selling, while the warrants currently launched in the A-share market cannot be short traded in a real sense. Only innovative pilot brokers can create warrants, but not all warrants can be created.
4. The current warrants are all physical delivery when they expire, involving exercise; The stock index futures are delivered in cash when they are due, which is more flexible and convenient.
2、 Differences between stock index futures and ETFs
ETF is an open-end index fund, which mainly tracks index investment Open-ended Funds , because the target of trading is also the index, there are certain similarities with stock index futures. However, there are also great differences between the two types of investment instruments.
1. ETF has no margin system and no leverage effect, so there is no amplification effect of income and risk.
2. The arbitrage mechanism of ETF occurs between the primary market and the secondary market. On the one hand, in terms of operation, it is necessary to use a package shares Arbitrage with ETF is complicated and demanding; On the other hand, in terms of capital, the minimum capital required for ETF subscription in the primary market is more than 1 million yuan, which is much higher than the margin system of stock index futures.
However, although there is a big difference between stock index futures and ETFs, due to the same characteristics of investment indexes, it is possible to carry out related operations between stock index futures and ETFs. Especially, the hedging and related arbitrage operations of stock index futures for ETFs will make investors' investment safer.
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