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What is the index period? How does the Taiwan index period work?

2022-03-24
1095
  Nowadays,more and more people are beginning to pay attention to investment and financial management.Everyone knows that the traditional way of investing is stocks,but many people do not know that there is another derivative in stocks,that is,stock index futures.Stock index futures are actually a combination of excellent stocks,because the investment in stock index futures has many advantages.His trading style is also more flexible,and his yield is also higher.Therefore,more and more people are now paying attention to the investment of stock index futures,and everyone hopes to develop their own investment channels professionally.So what is the Taiwan stock index?What are the factors that affect the index period?Next,I will answer these questions with you.

  What is the index period?

  On June 30,2003,the Taiwan Index 50 Futures Department was officially launched on the futures exchange.At that time,they selected 50 very representative stocks in the British FTSE Index and the Taiqing Stock Exchange,and then compiled them through these stocks.out of our futures index.The most representative among them is the ftse100 index of the United Kingdom.In fact,the most advantageous one is the Taiwan index futures.Because they can interact and hedge with the China Taiqing 50 Index,and have become an arbitrage tool for many institutions.

  How does the Taiwan index period work?

  First of all,let's talk about his operating hours.His operating hours are from 9:00 in the morning to 13:30 in the afternoon.

  Its operating time is relatively flexible,because he will not have a rest time in the middle.There is a big gap between this and the Hong Kong stock index and the mainland stock index.We must know that there will be a short rest period between our Hong Kong stocks and our A shares.This rest period will cause our operators to not be able to continue their experience,and it will also cause the entire transaction to not be particularly smooth.

  And there is a great advantage to buying indices,that is,the trading is relatively flexible.Not only can we buy its upside,but we can also buy its downside.So we can freely choose the direction we want.On the other hand,we can also freely buy and sell the positions we hold.We can also quickly sell our holdings when we find that the market starts to change.It allows us to take better profits.

  What are the factors that affect the index period?

  There are many factors that affect the trend of our Taiwan index futures.

  First,the first factor is our macro economy,if our macro economy is better.Most of our stocks will continue to rise,and our Taiwan index futures will also usher in a substantial rise at this time.If our macro economy is not optimistic,especially in the case of extremely pessimistic environment,our Taiwan index futures will also usher in a large unilateral decline.

  In the second aspect,the impact of policies will also lead to greater volatility in our entire market.For example,changes in our exchange rate will greatly affect our Taiwan index futures.Not only local policies will have an important impact on the entire market,but even international market policies will have a huge impact on the entire market.For example,if the Fed suddenly decides to raise or lower interest rates,the market will fluctuate on the second day.The price of our Taiwan index futures will continue to increase,and the volatility will be particularly violent.This time is a very good time to seize the opportunity.If you can grasp the right direction,then in a short period of time,you will be able to better expand your profits.

  In the third aspect,the operating conditions of the listed companies themselves will also affect the trend of the index.Especially for companies that are included in the index list,if their volatility is more violent,then the impact on the index will be greater.Although individual stock companies will not have a major impact on the index,if the company has a far-reaching impact,it will also have a greater impact on our index in the short term.From a long-term perspective,long-term or stable,the long-term impact is not particularly large.

  Fourth,our market factors will also have a significant impact on our stock index futures.For example,some of our investors may not be in a particularly stable mood.When they buy a large amount in a certain direction,they will generate certain activities for our market price.On the other hand,they began to sell a lot of the Taiwan index futures they held,which would also cause our price to plummet in an instant.Especially those large institutional and large customers,if they are carrying out a large number of operations,it will naturally lead to obvious fluctuations in our market.At the same time,it will also give us a misleading phenomenon that our market is in a stage of a big market.

  In the fifth area,that is investment sentiment,when our investors see our market ups and downs.We will also have an illusion,that is,should we follow this market trend in the process of investing?If we have a lot of investors to fluctuate and buy with the market at the same time,blindly following,then our market will also be coaxed up by our investors.As a result,our prices continue to rise upwards.Under such a circumstance,our market volatility will be more severe.

  In fact,this kind of thing has often happened in the past,especially in the case of a certain big market,such as the Federal Reserve suddenly decided to announce an interest rate hike.After all the markets learned the news,many colleagues would buy in the same direction.For example,there are a lot of people who buy it when it goes up.At this time,it is difficult for his price to go down.But the speed of the rise depends on the strength of everyone's buying.

  The sixth aspect is related to the background of the industry.There are some industries that are already a booming industry,and they are in the stage of explosion.Therefore,he can well drive the growth of their stock market value.When they drive the growth of their market value,they will also drive our Taiwan index futures to a stage of rising.If certain industries are in the sunset phase,then the future of the company will not be profitable.Most people are reluctant to invest in such a company,so the stock price of this company will also drop sharply,which will also affect our Taiwan index futures.As a result,our index price is slowly falling,and the speed of the decline may not be particularly fast,but this decline will also bring us a certain space.

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

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