2022 crypto Knowledge

Stock capital market: if the stock price base does not rise, all other derivatives will be zero.Second, the dependence of derivative financial products on the stock market1. The nature and risks of derivative financial products

Second, the dependence of derivative financial products on the stock marketFirst, the basic position of the stock capital market(All text materials are automatically generated by ai intelligence)

The existence and development of derivative financial commodity market is based on the stock market. The stock market provides the pricing basis and trading objects for derivative financial products. If the stock market does not rise, derivative financial products will lose the source of their price changes. For example, stock index futures are futures contracts with the stock index as the target. If the stock index does not rise for a long time, it will be difficult to attract investors and its market value will be greatly reduced.In the complex and charming financial world, the stock capital market is like the cornerstone of a magnificent building, while other derivative financial products are like building structures attached to this cornerstone. Once the stocks in the stock capital market do not rise, those seemingly diverse and exquisite other derivative financial products are almost equal to zero.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.