Current location - Trademark Inquiry Complete Network - Futures platform - Experts help explain the futures problem.
Experts help explain the futures problem.
The function of futures market is hedging, and it is also a futures market established on this basis. Why are the prices in the futures market and the spot market different? The contract traded in the futures market is delivered at some time in the future, so its price is an expectation of the future market price. Commodity prices are determined by the market, and futures prices only play a guiding role. Why choose the futures market to sell corn? If your corn has not been harvested or you will have corn in stock at some time in the future, at this time, you can judge that the prices in the futures market and the spot market are basically high. In order to maximize profits, you can sell futures contracts at a higher price in the futures market without spot, hold them for one delivery month, and then deliver them at that price. Because your futures contract is profitable, it makes up for your spot loss. Achieved the role of hedging.