Financial futures is a financial transaction. Secondly, futures have hedging and profit-making functions. Futures trading refers to the trading of standardized futures contracts by both parties in a centralized exchange market through open bidding. A futures contract is a standardized agreement concluded by both parties to a transaction, which stipulates that a certain quantity of a certain commodity will be delivered at the price agreed at the time of transaction at a certain date in the future. The basic tools of financial futures contracts are various financial instruments, such as foreign exchange, bonds, stocks, stock price indexes, etc. Futures is a kind of financial derivatives, which is risky, especially the risk is greater than that of stocks.
The difference between stocks and futures is that stocks are a means of financing for listed stock companies. Financing by issuing stocks, thus expanding the reproduction of enterprises. Futures is an expectation of the future economy, and it is a means to make profits by signing contracts to buy up and buy down. After the futures contract expires, it can be traded in kind or in reverse to offset the responsibilities and obligations entrusted by the contract. This is called liquidation or hedging. In the actual futures market, the proportion of physical delivery due is extremely low, and most of them choose to close their positions.