Futures trading is based on spot trading and is the development of general contract trading. In order to promote the circulation of futures, a special commodity, and ensure the smooth and healthy development of futures trading, all transactions are conducted in an organized futures market. Therefore, futures trading has the following basic characteristics.

1, contract standardization. Futures contracts are standardized contracts. This standardization means grade, quantity, quantity, etc. The commodities traded in futures are all specified in advance, and only the price changes. This greatly simplifies the transaction procedure, reduces the transaction cost, and minimizes the disputes and disputes arising from the different understanding of the terms of the contract.

2. Centralized trading. Futures trading must be conducted in a futures exchange. Those off-site customers can only entrust trading agents, that is, futures brokerage companies to participate in futures trading.

3. Two-way transaction and charging mechanism. Futures trading can be operated in both directions, which is simple and flexible. You can buy and sell the contract after paying the deposit. The vast majority of transactions can solve the performance responsibility through reverse hedging operation.

4. Margin system and leverage mechanism. The characteristic of high credit is the margin system of futures trading. Futures trading needs to pay a performance bond of 5- 15% to complete several times or even dozens of times of contract transactions. The implementation of the margin system not only makes the futures trading have the leverage principle of "small and broad", which attracts many traders to participate, but also provides performance guarantee for the transactions reached and settled by the exchange, ensuring that traders can perform their duties.

5. Daily debt-free settlement system. In order to effectively control the risks in the futures market, the daily debt-free settlement system based on the margin system is widely used.

Generally speaking, whether commodities can be traded in futures depends on four conditions:

First, whether there is price risk, that is, whether the price fluctuates frequently;

Second, whether the owners and demanders of commodities are eager for hedging protection;

Third, whether the goods can withstand storage and transportation; Fourth, whether the grades, specifications and quality of commodities are easy to distinguish. Different levels need to be upgraded. These are the four most basic conditions, and only commodities that meet these conditions can be traded as futures commodities.