1. Take the initiative to take risks in the futures market.
2. Speculation promotes market liquidity and ensures the realization of the price discovery function in the futures market.
3. Moderate futures speculation can reduce price fluctuation.
4. Speculators in the futures market not only speculate through short-term price fluctuations, but also use the price difference changes of the same commodity or similar commodities between different exchanges at different times to carry out arbitrage transactions. This speculation makes the prices between different varieties and different markets form a more reasonable price structure.
Futures speculation refers to the futures trading behavior in the futures market for the purpose of obtaining the spread income. Speculators play a vital role in futures trading, finding forward prices, guiding industrial equilibrium, improving market liquidity and bearing market price risks.
Therefore, to correctly understand the operating mechanism and economic function of the futures market, we must correctly understand and understand futures speculation.
Speculation is an indispensable part of the futures market, and its economic functions mainly include the following points:
1, bear the price risk. Futures speculators bear the risks that hedgers try to avoid and transfer, which makes hedging possible.
2. Improve market liquidity. Speculators frequently open positions and hedge their contracts, which increases the trading volume in the futures market, which not only makes hedging transactions easy to clinch, but also reduces the price fluctuations that traders may cause when entering and leaving the market.
3. Keep the price system stable. Commodity prices in various futures markets are highly correlated with the prices of different commodities.
The participation of speculators promotes the price adjustment of related markets and related commodities, which is conducive to improving the unreasonable price situation in different regions, improving the supply and demand structure of commodities in different periods, and making commodity prices more reasonable; It is also conducive to adjusting the price ratio of a commodity to related commodities, making it more rational, thus maintaining the stability of the price system.
4. Form a reasonable price level. Speculators buy futures at a low price, increase demand and lead to price increase, and sell futures at a higher price level, reducing demand, thus stabilizing prices and stabilizing price fluctuations, thus forming a reasonable price level.
5. Maintain industrial balance. In the expectation of future supply shortage, speculators will push up the forward price, give hedging profits to suppliers, and urge the industry to expand production, make up for the risk of future supply shortage and avoid real shortage.
When the speculators expect the future demand to be insufficient, they will urge the hedgers to release the inventory by suppressing the forward price, so as to reduce the overall inventory of the industrial chain in advance, avoid the risk of a large backlog of inventory in the future and shorten the industrial accumulation cycle. Maintain industrial inventory balance.