Moreover, the basis of futures market is forward trading, which evolved from the traditional forward trading market. Because of its strict standardization, the futures market largely limits the scope of this price risk and other uncertain risks. Therefore, the trading of bulk commodities is more flexible and convenient, and the trading of bulk commodities is more frequent and active.
It can be said that forward trading is the basis of the futures market, and the futures market is the extension and development of forward trading. If a market can be banned, it will be banned according to the development situation, because the futures market can completely replace all the functions of forward trading.