follow coin crypto- Top People also ask

2. The relationship between the market base of derivative financial products and the stock 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.

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.For 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.

Summary: The stock capital market occupies a fundamental position in the financial system. It is not only a barometer of macro-economy, but also has important functions of capital aggregation and resource allocation. Other derivative financial products exist and develop on the basis of the stock market. When the stocks in the stock capital market do not rise, derivative financial products are like rootless trees, lacking the basis of value change, the trading volume decreases, the risk is amplified, and the meaning of existence is almost lost, which is equivalent to zero. This also reminds us that while paying attention to derivative financial products, we can't ignore the cornerstone and root of the stock capital market.1. The economic barometer function of the stock market iconDerivative 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.