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2. The relationship between the market base of derivative financial products and the stock market.1. The economic barometer function of the stock market icon(All text materials are automatically generated by ai intelligence)

1. The nature and risks of derivative financial productsThe 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.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.

First, the basic position of the stock capital market1. The economic barometer function of the stock market iconStock capital market: if the stock price base does not rise, all other derivatives will be zero.