After more than 100 years of development and improvement, futures trading has become a quite mature and high-level trading method. This is inseparable from the two basic economic functions of the futures market itself:

(1) The function of avoiding market risk (transferring price risk).

In every link of today's economy, it is impossible to avoid price fluctuations in different degrees, that is, price risk, so people want to transfer this price risk, and the futures market is an ideal place to avoid business risks. Futures traders can transfer the risk of price fluctuation by "hedging" in the futures market.

(2) Find a reasonable price.

The futures exchange is an open, fair, just and competitive trading place, which concentrates many factors affecting the relationship between supply and demand in the exchange and forms a fair trading price through open bidding. It reflects the influence of various factors on a specific commodity in a certain period in the future. As the benchmark price of commodity value, this transaction price is quickly transmitted to all parts of the country through modern information transmission means. People all over the country use this important price information to make their own production, management and consumption decisions.