Futures is a derivative financial commodity, but it is not a very complicated commodity, but a financial commodity generated from our daily life and transactions, and then becomes a standardized and standardized contract. To put it simply, what we are talking about at present is a contract in which the buyer and the seller agree to trade a certain substantive commodity or financial asset on a certain day according to the contents of the contract. Futures are relative to spot. Knowing its production process, we can clearly understand what futures are. We now buy a house, a car, food or other things, all involving spot transactions. Spot trading is a commodity currency transaction with one hand paying and one hand delivering. Later, spot trading developed into forward trading. The so-called forward transaction is to sign a spot contract, buy and sell a certain number of goods at a certain price in the future, and then trade in the future after signing. Futures trading is developed on the basis of forward trading. The difference is that the object of futures trading is not physical or financial assets, but standard futures contracts, which can be transferred or fulfilled. Moreover, the ultimate goal of futures trading is not the transfer of ownership of commodities or financial assets, so it is different from the actual trading in the spot market. When buying and selling futures contracts, some people want to speculate for profit, while others want to avoid price risks. Futures trading is very attractive to investors who want to profit from market price fluctuations, or to producers and operators who want to prepare for a rainy day and protect themselves from drastic price changes. Futures contract is the object of futures trading, which is a legally binding agreement reached through futures exchange, that is, a contract to buy and sell a certain commodity in the future. Expressed in terms, a futures contract refers to a standardized contract made by a futures exchange, which promises to deliver a certain quantity and quality of physical or financial goods at a specific time and place in the future. The standardized terms of futures contracts generally include: (1) the number of transactions and the unit terms. The futures contract of each commodity stipulates a unified and standardized quantity and unit of quantity, which are collectively called "trading units". Simply put, it is to specify the specifications of a contract. (2) Quality and grade terms. Commodity futures contracts stipulate unified and standardized quality grades, and generally adopt the commodity quality grade standards formulated by the state. (3) Terms of trading time. Trading time refers to the time when the exchange allows trading. (4) The contract period is months. Commodity futures contracts specify the month of physical delivery. At the beginning of commodity futures trading, the first thing you notice is that each commodity has several different contracts, and each contract represents a certain month, such as 1999 1 1 soybean contract, and soybean contract in May 2000. (5) the lowest price change clause. Refers to the minimum allowable variation range of the quotation of buyers and sellers in futures trading, and the price variation range at each quotation must be an integer multiple of this minimum variation price. (6) deposit terms. Margin is one of the bases to ensure market security. Futures trading attracts a large number of participants because of the leverage of margin, which is characterized by small and wide. Futures contracts usually stipulate the general trading margin rate. (7) Price restriction clauses. The transaction price of a futures contract on a certain trading day cannot be higher or lower than the settlement price of the previous trading day. This system is used to control the fluctuation range of contracts and is a means of risk control. In some countries, exchanges do not stipulate the limit of price limit. (8) Terms of the last trading day. Refers to the deadline for futures contracts to stop trading. Every futures contract has a certain month limit. On a certain day in the contract month, the trading of the contract will be stopped and ready for delivery. There are two delivery methods, namely physical delivery or cash delivery. (9) Final delivery date clause. Refers to the deadline for futures contracts to stop delivery. Every contract is due for delivery, and delivery will stop on a certain delivery date.