What is futures trading and its main characteristics?
Futures trading refers to an advanced trading method based on spot trading and taking forward contract trading as the embryonic form of trading. Futures trading is the act of buying and selling futures contracts. Futures contract refers to a standardized contract for trading a certain number of commodities at a certain time and place in the future, which is both a futures transaction and a futures contract.
The main features of futures trading are:
1, from small to large: futures trading only needs to pay 5%- 10% margin, and it can complete ten times or even dozens of times of futures contract trading, that is, investors can buy and sell a lot with a small amount of funds;
2. Two-way trading: there is no order of buying and selling in the futures market. You can buy it first or sell it first. Two-way trading makes futures trading more flexible;
3. Don't worry about the credit problem: all futures transactions are settled through the futures exchange, and the exchange will guarantee the transactions regardless of the buyer or the seller;
4. The market is open and transparent;
5. High efficiency: Futures trading is a standardized transaction with fixed trading procedures and rules, so it is extremely efficient, and a transaction can be completed in a few seconds.