Futures is a kind of financial derivatives, which refers to a standardized contract that is traded in the futures market at the price agreed by both parties within a certain period of time. In futures trading, the subject matter of the contract can be financial instruments such as commodities, stocks, indexes and foreign exchange. Futures trading generally requires margin, which is a certain proportion of funds paid by traders in the exchange to ensure the smooth progress of trading.

Futures trading is widely used in modern financial markets. Investors can realize risk management and asset allocation through futures trading. Futures trading is mainly divided into hedging and speculation. Hedging refers to locking the price through futures trading to reduce the risk brought by market fluctuation; Speculation refers to gaining profits from price fluctuations through futures trading, which has certain risks.

Take agricultural futures as an example. Agricultural futures include soybeans, corn, cotton and sugar. Investors can profit from price fluctuations through futures trading. For example, if the soybean price is expected to rise, investors can buy soybean futures contracts and sell them when the price rises, so as to obtain the difference income. If the soybean price is expected to fall, investors can sell the soybean futures contract and wait until the price falls to buy the contract, so as to obtain the difference income. This trading method requires investors to have relevant market analysis and forecasting capabilities, as well as good risk control capabilities.