The change of market supply and demand is more complicated. The transaction price of forward contracts, which only reflects the expected change of market supply and demand once, can no longer adapt to the development of modern commodity economy, and needs a price that can continuously reflect the whole process of potential supply and demand changes.
So that the majority of producers and operators can adjust commodity production in time, avoid the price risk brought by unfavorable price changes, and make the whole social production process go smoothly. In this case, futures trading came into being.
The emergence of futures trading is not accidental, but based on the development of spot forward contract trading and the extensive commercial practice of commodity producers, traders and processors. The development of China's futures market began in the late 1980s and has been developing for more than 30 years.
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The futures market is a trading place or field that trades according to the agreement reached and delivers on the scheduled date. The obvious difference between spot and futures is that the delivery date of futures is in the future, and the conditions of delivery and payment, such as price, quantity, method and place, are stipulated in the spot contract, and both commodities and securities can be traded in the futures market.
Although the contract has been signed, the goods bought and sold by both parties may be in transit, may be in production, and may not even be put into production. The seller may or may not have goods or securities.
The futures market in a broad sense includes futures exchanges, clearing houses or settlement companies, brokerage companies and futures traders; The narrow sense of futures market only refers to futures exchanges. The futures exchange is the place to buy and sell futures contracts and the core of the futures market.
A mature futures market is equivalent to a completely competitive market to a certain extent, and it is the most ideal market form in economics.
Therefore, the futures market is considered to be a higher-level market organization form and an inevitable product of the development of the market economy to a certain stage. The futures market is a place where both parties do not deliver immediately after reaching an agreement or closing a deal, but deliver in a certain period in the future.
Baidu encyclopedia-futures market