1, definition: steel futures refer to steel futures trading in futures exchanges. It is an effective steel price risk management tool, which can provide a reliable mechanism for enterprises with steel price risks to meet their expectations of market prices.
2. Development history: The development of steel futures began in the 1960s, and futures exchanges in the United States and Europe began to introduce steel futures products. However, due to the unstable market environment at that time, the development of steel futures products in futures exchanges was slow. In 1980s, with the gradual stabilization of the market environment, steel futures products of futures exchanges began to develop rapidly.
3. Trading methods: There are two main trading methods for steel futures, futures trading and option trading. Futures trading refers to the future delivery date agreed by the buyers and sellers of the futures exchange and the price during this period. In futures trading, both parties can determine the future price through the contract and make delivery in a certain period of time in the future. Option trading means that the buyer can buy or sell steel futures at a pre-agreed price at a certain point in the future, but the buyer can also choose not to perform the contract without bearing any consequences.
4. Investment risk: There are certain risks in investing in steel futures, mainly including price risk, market risk and exchange rate risk. Price risk refers to the possibility that futures prices will fluctuate greatly due to market factors, which will have an impact on investors' investment income. Market risk refers to the volatility of the futures market, which will affect the investment income of investors. Exchange rate risk refers to the exchange rate change between the currency invested by investors and the currency traded in futures, which will affect the investment income of investors.
5. Investment strategy: To invest in steel futures, investors need to understand the trend of steel prices, pay attention to market changes, do a good job in risk control, do a good job in fund management, and avoid excessive investment.
6. Conclusion: Steel futures is an effective tool for steel price risk management, which can provide a reliable mechanism for enterprises with steel price risks to meet their expectations of market prices. However, when investing in steel futures, investors should also pay attention to risk control, actively grasp the market conditions, do a good job in fund management, and avoid investment losses.