cryptocurrency and digital currency

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.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.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.

2. The function of capital accumulation and resource allocation in the stock market.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.1. The nature and risks of derivative financial products

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 productsStock capital market: if the stock price base does not rise, all other derivatives will be zero.