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What does futures in the stock market mean? What do you mean by spots?
Commodity futures trading is the sale of "standardized contracts" (namely "futures contracts") representing specific commodities. In the spot market, the buyer and the seller deliver the goods and the other pays, or conclude a transaction through negotiation and signing a contract. The contract can stipulate the quality, quantity and price of the goods, as well as the time and place of delivery. Futures contracts have uniform provisions on the quality, specifications, delivery time and place of goods, and the only variable is the price of goods. After paying a certain margin, buyers and sellers can openly bid through commodity futures exchanges according to certain rules. The characteristics of commodity futures trading (1) are small and wide. Only pay 5-20% of the performance bond control 100% of the virtual funds.

(2) transaction convenience. Because the main factors such as commodity quality and delivery place in futures contracts have been standardized, the interchangeability and liquidity of contracts are high.

(3) The information is open and the transaction efficiency is high. Futures trading enables traders to compete fairly under equal conditions through open bidding. At the same time, futures trading has a fixed place, procedures and rules, and it operates efficiently.

(4) Futures trading can be operated in two directions, which is simple and flexible. After paying the deposit, you can buy and sell futures contracts, and you only need a few instructions to reach a transaction in a few seconds or minutes. When the market is at a favorable price, close the position or cover the position in the opposite direction.

(5) The performance of the contract is guaranteed.