Li Qiang, the director of Xinhu Futures Research Institute, unlocks advanced "tools" for veteran investors: a course that opens up practical training in stock index futures trading

You may not have traded stock index futures, but you have certainly heard the "legends" about them in the market, or even used them to observe and predict the direction of the stock market: experienced investors always check the previous night's "A50" trend before the market opens, which is a stock index futures product, officially known as "FTSE China A50 Index Futures." For professional investment institutions, stock index futures are a fundamental tool used to hedge risks and enhance returns—when positions are heavy, they will allocate short positions in stock index futures to hedge risks. In extreme market environments, hedge funds can even profit by shorting stock index futures—there are numerous cases of hedge funds making a name for themselves by profiting from shorting stock index futures during market crashes, from the "Black Monday" in 1987 to the market collapse triggered by the U.S. subprime mortgage crisis in 2008. It is clear that there is a high negative correlation between the price of the S&P 500 index in the U.S. and the open interest in its stock index futures. Whenever the market drops sharply, the open interest in stock index futures rises rapidly (for comparison, the closing price of the S&P 500 in the chart is inverted—the higher the peak of the blue line, the worse the S&P 500 has fallen). The open interest in stock index futures can even be used to accurately gauge the market trend to a certain extent! Most people are not suited to bet on low-probability events through stock index futures in hopes of "getting rich overnight." However, this does not prevent us from mastering the characteristics and advantages of this advanced tool to achieve the goals of hedging risks and enhancing returns. Stock index futures have three major advantages compared to traditional stock markets: Faster market expectation reflection: Due to T+0, two-way trading, and leverage mechanisms, stock index futures often reflect expectations faster than the spot market—many high-frequency quantitative funds adjust their spot strategies for the next day based on the performance of overnight stock index futures. Certain returns from arbitrage: The basis fluctuations between stock index futures and spot indices provide high certainty for arbitrageurs. For example, in 2021, the CSI 300 futures once showed a discount of over 30 points, providing a huge arbitrage opportunity, leading institutional funds to enter the market and achieve over 10% profit in a single month! Diverse arbitrage opportunities: Price difference fluctuations between different varieties present good arbitrage opportunities. For instance, during the "large and small cap style switch" market, going long on IF (CSI 300) and shorting IC (CSI 500) brought significant excess returns. By utilizing the above advantages of stock index futures, ordinary investors can not only use them as a barometer for observing stock market trends but also apply what they learn to optimize their investment strategies. Data backtesting shows that after reasonable hedging with stock index futures, investors can achieve higher excess returns and significantly reduce the volatility of their investment portfolios. If you are now Accumulating substantial profits in a bull market and worried about a pullback? You can hedge risks with small position futures short positions and hold your stocks with peace of mind. If you have a large amount of capital, you can also obtain stable returns through arbitrage operations to balance portfolio risks. Although stock index futures have many advantages, their popularity in the Chinese market remains limited due to high investment thresholds and relatively complex operations. Many investors "have heard of it but do not know the details." To help investors systematically grasp the trading ideas and arbitrage logic of stock index futures, Wallstreetcn, in collaboration with Xinhuh Futures Research Institute, will hold a “Practical Training Course on Stock Index Futures Trading” master class in Shanghai on November 1st, inviting Li Qiang, Deputy General Manager and Director of the Research Institute of Xinhuh Futures Company, and Zhao Xinyi, Stock Index Researcher of Xinhuh Futures and Senior Strategy Consultant for Options at Shanghai Stock Exchange to teach this course. Xinhuh Futures is the highest-rated AA-level futures company in China (only 18 institutions nationwide have received this rating) and is one of the leaders in the domestic futures industry. The two instructors will spend a whole day systematically training participants on the knowledge system and analytical framework of stock index futures, drawing on over a decade of frontline investment experience, to help everyone better understand the practical skills that need to be focused on in stock index futures trading. For details about this course and guest introductions, please refer to the poster below. Interested friends can click on the poster below to register, and early bird discounts are available for current registrations. Warm Reminder This course includes an hour of interactive Q&A, where students can discuss their most concerned questions with Director Li Qiang and Teacher Zhao Xinyi, and get answers face-to-face. Friends interested in this course can click on the image above to register. If you want to know more course details, you are also welcome to scan the image below to consult the course assistant.