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1. The nature and risks of derivative financial productsSecond, the dependence of derivative financial products on the stock marketParticipants 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.

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.(All text materials are automatically generated by ai intelligence)(All text materials are automatically generated by ai intelligence)

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.Under the unified leadership of the CPC Central Committee and the State Council, the stock market has always been regarded as a barometer of a country or region's macro-economy. When the macro-economy improves, the profit expectation of enterprises increases, and the stock price often rises. For example, during the economic boom, the sales of products of technology giants like Apple increased greatly, profits continued to rise, and stock prices also rose. The price trends of many stocks can reflect the vitality and development trend of the overall economy. According to statistics, in the past economic cycle, there was a positive correlation between the stock market index and GDP growth of about 70%. This means that the rise of the stock market is often accompanied by macroeconomic growth, and the failure of the stock market may imply that there are potential problems in the economy.