Futures trading is a contract, not a physical object. The contract is the object that the exchange hangs out for enterprises and traders to trade. Traders use frozen deposits to control contracts.

Sell first and then buy, and explain the principle of short-selling profit in futures in an easy-to-understand way.

First of all, Zhang San learned that the current price of apples in the market is 10 yuan/kg, and thinks that the price should go down, while Li Si thinks that the price of apples will go up or not. Secondly, Zhang San and Li Si signed an order, stipulating that one month later, Li Si would buy 10 kg of apples from Zhang San at the price of 10 yuan/kg. At the same time, both parties * * * found Wu Wang as the supervisor, and each paid Wu Wang 10 yuan as the down payment for the performance of the contract, that is, the down payment was10% of the contract amount;

Finally, a month later, the apples in the market fell to 9 yuan/Jin. Zhang Sanhua 90 yuan bought 10 Jin of apples and gave them to Li Si, who paid Zhang San 100 yuan. At the same time, Wang Wu returned their respective deposits 10 yuan to Zhang San and Li Si. In this process, Zhang San shorted apples, sold them first and then bought them, and earned 10 yuan.