First, to avoid price risk, producers can avoid the risk of price fluctuation in spot trading by hedging.
Second, find the price. Traders from all directions in the futures market have brought a lot of supply and demand information.
Third, it is conducive to the stability of market supply and demand and prices, the expectation of future supply and demand situation, and the guidance of commodity production and demand.
Fourth, save transaction costs. The futures exchange provides a safe, reliable and fast trading place with high efficiency and avoids triangular debts.
Five, futures is an important investment tool, which helps to make rational use of social idle funds.