Futures are relative to spot. Futures are the subject matter that is bought and sold now, but will be settled or delivered in the future. This subject matter can be commodities (such as gold, crude oil, agricultural products), financial instruments or financial indicators. The delivery date of futures can be one week later, one month later, three months later or even one year later. A contract or agreement to buy or sell futures is called a futures contract. The place where futures are bought and sold is called the futures market. Investors can invest or speculate in futures. Improper speculation on futures, such as short selling stocks, will lead to financial market turmoil.

The future in English is the future, which evolved from the word "future". It means that both parties to the transaction don't have to deliver the physical object in the early stage of the transaction, but agree to deliver the physical object at some time in the future, so China people call it "futures".

Folding futures trading value algorithm

Position funds: total funds * (x%-y%);

Maximum allowable single loss

First-hand opening price: (current price * trading unit * deposit)+handling fee;

Default number of lots (maximum opening position): holding money/first-hand opening price;

Maximum stop loss point of each transaction: maximum allowable loss/number of positions opened/trading unit/minimum price change;

The value of a price fluctuation of futures varieties: minimum fluctuation price * trading unit * number of positions opened;

A. The commodity variety, quantity, quality, grade, delivery time and delivery place of a futures contract are established and standardized, and the only variable is the price. The standards of futures contracts are usually designed by futures exchanges and listed by national regulatory agencies.

B. Futures contracts are concluded under the organization of the futures exchange and have legal effect, and prices are generated through public bidding in the trading hall of the exchange; Most foreign countries adopt public bidding, while our country adopts computer trading.

C the performance of futures contracts is guaranteed by the exchange, and private transactions are not allowed.

D futures contracts can fulfill or cancel their contractual obligations through settlement of spot or hedging transactions.

Folding element

A. Various transactions

B. Number and unit of transactions

C the lowest change price, and the quotation must be an integer multiple of the lowest change price.

D. daily maximum price fluctuation limit, that is, price fluctuation limit. When the market price rises to the maximum increase, we call it "daily limit", otherwise, it is called "daily limit".

E. Contract month

F. Transaction time

G. Last trading day: The last trading day refers to the last trading day when futures contracts are traded in the contract delivery month.

Delivery time: refers to the actual delivery time stipulated in this contract.

I. Delivery standards and levels

J. place of delivery

K. security deposit