What exactly is futures? From the traditional definition of economics, futures refers to a standardized contract made by a futures exchange, which promises to deliver a certain number of subject matter at a specific time and place in the future. The futures products we operate every day are standardized contracts about soybeans, corn, wheat, copper, aluminum and gold. But this is only the superficial meaning of futures. For futures speculators, it is not enough to know this step. We should also see the confrontation between speculative bulls and speculative bears in the futures market, especially the role of big speculators in the market. In fact, for speculators, the short-term fluctuation of futures prices is the most important. Only by finding these short-term fluctuation directions can the transaction be successful. These short-term and medium-term price directions are more determined by the confrontation between bulls and bears, especially the behavior of market speculators.

According to the definition that futures are commodity contracts, futures prices will be determined by fundamentals, which is correct to some extent. The confrontation between long and short sides, especially the behavior of market players, has a more direct impact on prices. There are always some big funds in the market, and their strength is enough to control the price changes within a certain period and scope. They will try their best to let the price go according to their own wishes for their own interests. Even without the participation of main funds, the unity and stability of bulls or bears among market participants will have an impact on the frequency and amplitude of price fluctuations. Any futures contract will make its price basically conform to the fundamentals when it is delisted, but before it is finally delisted, there will be several big fluctuations, and most of these fluctuations are determined by long-short confrontation, especially the control of main funds. Therefore, even if we successfully predict the final price determined by fundamentals, if our position is greatly pulled in the opposite direction after entering, it is estimated that we will lose money. Therefore, to participate in futures, we must first see that futures are a kind of confrontation.

In this sense, the futures market is like a battlefield. This battlefield is like China in the Spring and Autumn Period and the Warring States Period. Many power groups are on and off in this battlefield for their own interests. They are strong and weak. Strong like the five tyrants in the Spring and Autumn Period or the seven heroes in the Warring States Period, weak like a small city-state. And you are like one of the forces, your capital is your soldier, and the number of soldiers is the decisive factor of your right to speak in this market. According to China's ancient art of war, the victory or defeat of a war depends on the weather, location, people and peace. The fundamental factors of futures market are just like weather and location, while the internal strength of bulls or bears in futures market is human and factors.