2. Futures price Futures contract is a kind of price signal that constantly reflects the relationship between supply and demand and its changing trend. Futures contracts change hands frequently, so that the emerging prices can constantly reflect the supply and demand situation and changes in the market.
3. High transparency of futures trading. The futures market follows the principles of openness, fairness and justice. Trading orders are matched in a highly organized futures exchange, and all futures contracts must be publicly traded on the futures exchange, and over-the-counter trading is not allowed. The free quotation and open competition of the exchange avoid the fraud and monopoly that are easy to occur in one-to-one spot trading.
4. There are many participants in futures trading with concentrated supply and demand and strong market liquidity, such as commodity producers, sellers, processors, importers and exporters and a large number of speculators. These hedgers and speculators gather together to compete through brokers, and the market liquidity of futures contracts is greatly enhanced, which overcomes the limitation of insufficient liquidity in the spot trading market and helps to form prices.