The so-called "futures-to-spot" (hereinafter referred to as futures-to-spot) means that members (customers) who hold contracts in the same month and in opposite directions reach an agreement, apply to the exchange, and after being approved by the exchange, the exchange will close the positions on their behalf at the price stipulated by the exchange, and at the same time exchange warehouse receipts with the same quantity, variety and direction as the subject matter of the futures contract at the agreed price. Basis trading refers to a trading method that uses the futures price of one month as the pricing basis, and uses the futures price to increase or decrease on the basis of negotiation and agreement between the two parties to determine the price of spot goods bought and sold by both parties. In this way, no matter what the actual price of the spot market is, as long as the basis obtained by the hedger and the counterparty of the spot transaction through negotiation is completely equal to the basis at the beginning of hedging, complete hedging can be achieved and the effect of complete hedging can be achieved. If the hedger can win a more favorable foundation, then the hedging transaction will be profitable. Difference: cash transfer: delivery. Basis trading: liquidation. The essence of basis trading is that the hedger transfers the basis risk faced by the hedger to the counterparty in spot trading through basis trading, and the hedger can achieve the purpose of hedging completely or profitably through basis trading, focusing on serving the spot enterprise;

1. Futures-to-spot trading provides another way for unregistered commodity producers and users to use futures trading to preserve their value, avoiding the common disadvantages of default in payment in spot trading and stabilizing the established spot trading relationship.

Second, converting futures into cash can meet the requirements of material enterprises for physical brands. Different material companies have different requirements for brands. For example, the same copper enterprise, some must use a brand of high-purity cathode copper, while others use standard cathode copper; And glue companies, some want to use Yunnan glue, and some are used to using Hainan glue. By transferring futures to spot delivery, the designated brand can be obtained, thus stabilizing the quality of the final product.

III. Futures meet the requirements of material enterprises for delivery warehouses (delivery areas) in cash. Material companies are located all over the country, each with the most convenient and economical delivery location. For example, enterprises in Shanghai want to pick up the goods in Shanghai warehouse, and enterprises in Guangdong want to pick up the goods in Guangdong. By transferring futures to spot delivery, you can get the goods in a warehouse that is convenient for both parties.

4. Converting futures into cash can reduce the financial pressure of material-using enterprises, let production enterprises withdraw funds in advance and improve the capital turnover rate of enterprises. When the contract expires and the goods are delivered in a centralized way, the material enterprises have to take out millions to tens of millions of yuan at one time to drag the raw materials back to the factory, which increases the inventory and occupies a lot of money at one time. Turning futures into cash allows material enterprises to buy back raw materials in batches according to production needs, which reduces the pressure of centralized use of funds and reduces inventory; Production enterprises can receive reproduction funds in advance or in batches.

5. Futures transshipment will greatly reduce transportation costs. Buyers and sellers don't have to transport goods back and forth, which saves money.