Core Insights - Stock index futures are a "double-edged sword" that can provide efficient risk management and profit opportunities but can also amplify losses due to leverage and complexity [1] Group 1: Contract Expiration Effect - Understanding the "contract expiration effect" is crucial for trading stock index futures to avoid non-systematic risks caused by time factors [2] - The expiration date is set for the third Friday of the current month, the next month, and the following two quarters, leading to increased price volatility as positions converge to the spot index [2] - Strategies to mitigate risks include "early roll-over" to more liquid contracts, "avoiding delivery months," and being aware of position limits set by exchanges [2] Group 2: Leverage and Position Management - Establishing a "dynamic balance of leverage and position" is essential for risk control in stock index futures trading [3] - Lower margin ratios lead to higher leverage, which can result in significant gains or losses from minor price fluctuations [3] - Investors should keep leverage below 3 times their capital and adjust positions based on profit and loss thresholds to avoid liquidation risks [3] Group 3: Basis Analysis - Learning "basis analysis" is key to improving the success rate in trading stock index futures [5] - The basis reflects market expectations for future index movements, with positive basis indicating expected declines and negative basis indicating expected increases [5] - Significant deviations in basis can present arbitrage opportunities, and changes in basis direction can signal market trends [5] Group 4: Stop-Loss and Emergency Plans - Implementing "stop-loss and take-profit strategies" is vital for protecting accounts during extreme market conditions [6] - Stop-loss levels should not exceed 5% of the margin, and trailing stop-loss strategies can help secure profits [6] - Emergency plans should include automatic reduction of positions during significant market movements to minimize losses [7] Group 5: Overall Trading Philosophy - The essence of trading stock index futures lies in "respecting leverage, managing basis, controlling positions, and adhering to discipline" [7] - This trading arena is not suitable for all investors and requires professional knowledge, risk tolerance, and discipline [7] - Long-term profitability hinges on effective risk management rather than merely defeating the market [7]