199010 June 12, China's first standardized national grain wholesale market, Zhengzhou Grain Wholesale Market in China, officially opened, thus opening the prelude to the development of modern grain wholesale market in China. In February 2004, Zhengzhou Grain Wholesale Market in China was transformed from a public institution into a wholly state-owned enterprise and renamed Zhengzhou Grain Wholesale Market.
In September 2006, Zhengzhou Grain Wholesale Market was designated as Zhengzhou National Grain Trading Center by the State Grain Bureau.
Futures trading function:
1, hedge
Risk aversion means that producers and operators can effectively avoid, transfer or disperse the risk of price fluctuation in the spot market by hedging in the futures market. Hedging is to buy or sell commodity futures with the same quantity but opposite direction in the futures market, so as to make up for the losses caused by the adverse changes in the spot market price by selling or buying futures contracts at some future time.
2. Discover the price function
The futures market forms a real, predictable, continuous and authoritative price through an open, fair, efficient and competitive futures trading operation mechanism. The price formed in the futures market is recognized by the public because the futures market is an organized and standardized market, and the futures price is formed in a special futures exchange.
A large number of buyers and sellers gather in the futures exchange, and the information they have about the relationship between supply and demand of a commodity and its changing trend is concentrated in the trading hall, thus making the futures market an open and freely competitive market.
In this way, many supply and demand factors that affect the price of a commodity can be reflected in the futures market through the futures exchange, and the formed futures price can accurately reflect the real supply and demand situation and its price change trend.
3. The function of venture capital
For futures speculators, futures trading also has the function of making venture capital and obtaining risk return.