Advantages: It has the function of hedging. As far as commodity futures are concerned, give a simple example:

In September, an oil factory estimated that 10/00 tons of raw soybean was needed in October. At that time, the spot price of soybean was 20 10 yuan per ton, and the oil factory was satisfied with the price. It is predicted that the soybean price may increase by 5438+065438+ 10 in June. Therefore, in order to avoid the risk of rising raw material costs caused by future price increases, the oil factory decided to conduct soybean hedging transactions on Dalian Commodity Exchange. The transaction is as follows:

Spot market futures market

In September, the soybean price was 20 10 yuan/ton. Buy 10 lot 165438+ 10 month soybean contract: offer 2090 yuan/ton.

10/00 tons of soybeans1/kloc-0: the price is 2050 yuan/ton; Sell 10 lot 165438+ 10 month soybean contract: offer 2 130 yuan/ton.

Arbitrage results in a loss of 40 yuan/ton and a profit of 40 yuan/ton.

The net profit of the final result is 40* 100-40* 100=0.

Through this set of hedging transactions, although the spot market price has changed adversely to the oil plant, the price has increased by 40 yuan/ton, so the cost of raw materials has increased by 4,000 yuan; However, the trading in the futures market made a profit of 4,000 yuan, thus eliminating the impact of adverse price changes. Therefore, it can be said that buying hedging avoids the risk of price changes in the spot market.

Disadvantages: the futures market is easily controlled by the main force, thus affecting the spot market, and some malicious speculation will greatly affect the healthy development of the spot market.

I hope I can help you.