PriceDiscovery is a process in which the supply and demand sides openly bargain in the futures market, constantly update the commodity price level and spread to the world through fierce competition, thus making the commodity price become the world price. Simply put, price discovery is the process of discovering competitive prices and world prices. Price discovery is one of the important economic functions of the futures market. It involves market structure, market behavior, market information, futures market and risk management. Price discovery is not confused with general price decision.

Price discovery is an important economic function of the futures market, and it is also the basis for the existence and development of the futures market. Competitive price information in futures markets around the world is constantly spreading and influencing each other, thus forming a worldwide competitive price.