The characteristic of futures trading is to control the relationship between supply and demand with market forces. Because the demand for goods and services is often influenced by natural factors, political and economic factors, the price changes are uncertain, and futures trading will turn this uncertainty into business opportunities. Therefore, market forces are its foundation, and prices depend on market demand, which enables traders to decide whether to advance or retreat by observing market changes and other factors.
In futures trading, the risk management system is very important, because traders are faced with risks every time they operate. Futures traders need to learn how to use insurance strategies to reduce risks. In order to better control risks, technical analysis and basic analysis are also very important. The purpose of technical analysis is to evaluate the trend of market changes, while basic analysis is suitable for studying the influence of various factors on market supply and demand and price. By adopting these analytical methods, traders can better control risks and respond to market changes more flexibly.