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

In the complex and charming financial world, the stock capital market is like the cornerstone of a magnificent building, while other derivative financial products are like building structures attached to this cornerstone. Once the stocks in the stock capital market do not rise, those seemingly diverse and exquisite other derivative financial products are almost equal to zero.Stock capital market: if the stock price base does not rise, all other derivatives will be zero.1. The nature and risks of derivative financial products

First, the basic position of the stock capital marketAccording 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.Second, the dependence of derivative financial products on the stock market