Futures and spot are completely different. Spot is actually a tradable commodity. Futures are mainly not commodities, but standardized tradable contracts with certain mass products such as cotton, soybeans and oil and financial assets such as stocks and bonds as the targets. Therefore, the subject matter can be commodities (such as gold, crude oil and agricultural products) or financial instruments.

2. Futures operation:

From the perspective of futures trading methods, there are two types of successful futures investors:

1) The first futures trading method is that investors have their own trading and risk control system that has been tested by long-term simulation and actual combat. They have their own trading system, which can grasp the success rate and the dead hole of the system. When they make money, this is what the system expects. When they lose money, they realize that this is the dead hole in the system. With a 20% chance of failure, they will lose money. They are comfortable and stress-free, because they know that the system they designed has an 80% success rate every time.

2) The second futures trading method is "half a bucket of water" futures investors. "Half a bucket of water" means that knowing that one's level is limited, it is impossible to establish one's own trading system like the first successful futures investor, but dare to follow others' proven successful trading system meticulously and persistently like the simple "Eight Rules of glanville Average", thus ensuring a considerable success rate.

3. Long and short futures:

Investors believe that futures prices will rise, so they will go long (buy and open positions), close positions when they rise (sell), and earn: price difference = close positions-open positions.

Investors think that futures prices will fall, so they short (sell and open positions), fall (buy) and close positions, earning: price difference = opening price-closing price.