The theoretical function of futures is to avoid risks and price discovery, and now it has the latest asset management function.

For example, the international copper price fluctuates greatly, and the processing fee of many domestic copper processing enterprises is far less than the fluctuation risk of copper price. If an enterprise processes a ton of copper with a profit of 1000 yuan, but the price of copper fluctuates more than 1000 yuan a day in the market, how can you sell the processed copper? Does the price of copper go up or down? You are like a boat in the sea, how can you make a profit?

So many copper processing enterprises mostly hedge in the futures market. The willingness of other industries to participate in the futures market is reduced due to insufficient marketization and weak linkage at home and abroad.

2. Before the listing of stock index futures, the domestic stock market can only buy up but not sell short. Once the market falls, everyone rushes to sell, causing the stock market to fluctuate greatly, which is extremely unfavorable to investors and the development of the securities market. After the introduction of stock index futures, people will definitely have differences on the market. Some people are short, others are long, and the market is not prone to unilateral market fluctuations. Especially when the market is bad, you can short stock index futures, avoid the risk of market decline, and even make a profit. Avoid risks and manage wealth.