Commodity futures trading is the sale of "standardized contracts" (namely "futures contracts") representing specific commodities. In the spot market, the buyer and the seller deliver the goods and the other pays, or conclude a transaction through negotiation and signing a contract. The contract can stipulate the quality, quantity and price of the goods, as well as the time and place of delivery. Futures contracts have uniform provisions on the quality, specifications, delivery time and place of goods, and the only variable is the price of goods. After paying a certain margin, buyers and sellers can openly bid through commodity futures exchanges according to certain rules.

Second, the characteristics of commodity futures trading

(1) Small and wide.

Only pay 2-20% of the performance bond control 100% of the virtual funds.

(2) transaction convenience.

Because the main factors such as commodity quality and delivery place in futures contracts have been standardized, the interchangeability and liquidity of contracts are high.

(3) The information is open and the transaction efficiency is high.

Futures trading enables traders to compete fairly under equal conditions through open bidding. At the same time, futures trading has a fixed place, procedures and rules, and it operates efficiently.

(4) Futures trading can be operated in two directions, which is simple and flexible.

After paying the deposit, you can buy and sell futures contracts, and you only need a few instructions to reach a transaction in a few seconds or minutes. When the market is at a favorable price, close the position or cover the position in the opposite direction.

(5) The performance of the contract is guaranteed.

After the futures transaction is completed, it must be confirmed by the settlement department, and there is no need to worry about the performance of the transaction.

Third, the function of commodity futures trading.

The basic function of commodity futures trading is to find prices and avoid price risks.

(1) Discovery price:

There are many participants in futures trading, all trading at the price they think is the most suitable. Therefore, futures prices can comprehensively reflect the expectations of both supply and demand for the relationship between supply and demand and price trends in a certain period of time in the future. This kind of price information increases the transparency of the market and helps to improve the efficiency of resource allocation.

(2) Avoiding market risks:

In the actual production and operation process, in order to avoid rising costs or falling profits caused by changing commodity prices, futures trading can be used for hedging, that is, buying or selling the same amount of goods in opposite directions in the futures market, so that the gains and losses in the two markets can offset each other.

Futures is also an investment tool. Because the futures contract price fluctuates, traders can use the price difference to earn risk profits.

Four, the composition of commodity futures market

Futures market is an advanced form of spot market development and a powerful tool to avoid risks.

China futures market consists of China Securities Regulatory Commission, futures exchange, futures brokerage companies, hedgers and speculators.

(1) China Securities Regulatory Commission

China Securities Regulatory Commission is the administrative organ of the state. Responsible for formulating macro-management policies, monitoring market risks, examining and approving trading rules and listed products of futures exchanges, futures brokerage companies and futures exchanges, and appointing senior managers of futures exchanges.

(2) Exchange:

The futures exchange is the main body of the futures market and a non-profit legal person with membership system. A futures exchange shall organize trading in accordance with its articles of association and trading rules. As the seller of the buyer and the buyer of the seller, the futures exchange undertakes the responsibility of performance, maintains fair trade, monitors market risks and provides trading facilities and technical means; Release market information, warehouse receipt information and other related information; Research and develop new contracts and new technologies, etc. To ensure that futures trading is open, fair and just.

(3) Brokerage companies:

The futures brokerage company is an independent legal person approved by the China Securities Regulatory Commission and registered with the State Administration for Industry and Commerce. A futures brokerage company shall be a member of at least one futures exchange. According to the regulations of China Securities Regulatory Commission, futures brokerage companies cannot engage in proprietary trading, but can only act as trading agents for customers. It is an intermediary that collects commissions, accepts customer orders and completes transactions through the exchange.

(5) Various investors (customers):

Various investors involved in futures trading include hedgers and speculators. Hedgers are the main body engaged in commodity production, storage and transportation, processing and financial investment activities. They use the price discovery mechanism in the futures market to hedge the spot market transactions, but give up the purpose of making profits in the futures market.

Speculators are the main participants in earning the price difference. They buy low and sell high in the daytime trading in the futures market. They are lubricants and risk takers in the futures market, and the purpose of hedging cannot be achieved without the participation of speculators. In real market, speculators and hedgers are not inseparable.

Verb (abbreviation for verb) How do customers trade futures?

(a) to understand the specific contents of futures contracts and be familiar with the relevant rules and management measures of futures trading.

(2) Analyze futures trading and formulate appropriate strategies.

There are two main analytical methods for futures trading:

1. basic analysis method: analyze the basic factors that affect the relationship between supply and demand of commodities, such as the country's economic policy, economic environment, the situation of substitutes and even climate, and judge the possible price trend accordingly.

2. Technical analysis method: According to the historical data of futures prices reflected in the chart, the future price trend is predicted through inductive analysis.

(3) Compare brokers and choose the best one to open a trading account.

(four) the correct instructions, timely confirmation of transactions and settlement.

Six, commodity futures trading practice

(1) Hedging:

1. Buying hedging: (also known as long hedging) means buying futures in the futures market, and using long positions in the futures market to ensure short positions in the spot market to avoid the risk of rising prices.

At the same time, the futures were sold, and the profit per ton was 0.02 million yuan. The two markets break even, effectively locking in costs.

2. Selling hedging: (also known as short hedging) is to sell futures in the futures market, and use short positions in the futures market to ensure long positions in the spot market, thus avoiding the risk of falling prices.

(2) Venture capital:

1. Use the price fluctuation of a certain variety to speculate.

(A) short selling speculation

(B) short selling speculation

2. Hedging profits

(1) Arbitrage by using the price difference of related varieties.

(two) arbitrage by using the price difference of the same variety in different futures markets.

Use the price difference arbitrage of the same variety in different delivery months.

(d) Arbitrage by using the price difference between spot and futures.

7. How to treat futures risks?

Because the futures trading adopts the margin system, one of its remarkable characteristics is to make larger transactions with less money, which is called the leverage of margin and has the characteristics of "taking small bets to make big ones". Therefore, the leverage principle of futures trading also reveals to us that the existence of its risks is inevitable.

In fact, the spot market also has great risks, which are as risky as the futures market, but the risks in the spot market are imperceptibly, quietly and slowly infiltrated into your production and operation process. When you feel that there is a risk, this risk has brought you to the point of recovery. Especially in the market economy, we often see the loss of the whole industry, or a long-term loss or even bankruptcy of an enterprise. The main reason is that enterprises did not predict, identify and avoid risks very early. Because the risks in the futures market are all completed in a visible and tangible moment or in a short time, people think that futures trading is a risky market. Actually, it is not, because futures investors can not only pay close attention to market dynamics, collect a lot of relevant information, analyze and predict the price trend of the futures market in depth and in detail, but also constantly sum up experience in actual trading, gradually master the rules and trading strategies of the futures market, predict risks, and take measures to avoid risks, so as to better grasp the market pulse and control risks to a minimum. In addition, futures trading saves more time than spot market, which makes traders exposed to more "opportunities" at the same time.

Eight, industry terminology

Entrustment form: an order for buying and selling goods entered by a market representative through a computer terminal.

Transaction form: a sales contract form generated by computer matching.

Opening price: refers to the transaction price generated by call auction within five minutes before the opening of a futures contract.

Closing price: the final transaction price of a commodity on that day.

Highest price: the highest transaction price of a commodity on that day.

Lowest price: the lowest transaction price of the commodity on that day.

Latest price: the latest transaction price of a commodity on that day.

Settlement price: the weighted average price of all contracts of a commodity on that day.

Purchase price: the current highest declared purchase price of a commodity.

Sales price: the current lowest declared sales price of a commodity.

Price fluctuation: the difference between the closing price of a commodity on the same day and the settlement price yesterday.

Daily price limit amount: the maximum price limit that can be entered for a commodity on that day (equal to yesterday's settlement price+maximum change range).

Price limit: the lowest price limit that a commodity can enter on the same day (equal to yesterday's settlement price-maximum change range).

Empty inventory: the total number of open contracts for a commodity at present.

Open position: two-way operation of buying and selling only does one thing, that is, open position.

Close position: buy and sell, or buy and settle the original new order after selling.

Single number: the unique identification given to the entrustment document or transaction document by the system.

Nine, the futures market regulations

X. Comparison of Futures Investment with Real Estate, Stock and Securities Investment

Compared with real estate, stock securities and futures investment:

(1) It is very difficult for individuals to invest in real estate, because real estate development often has strict requirements on the investment scale and cycle, and the investment scale is large and the cycle is long. The rate of return gradually decreases with the extension of time, which is greatly influenced by national policies. The current weak real estate development market has made many investors suffer from the backlog of funds and the burden of triangular debts.

(2) In recent years, stocks and securities have become a noticeable phenomenon in China's economic life. "Stock speculators" can be said to be a huge team, but at present, China's stock securities are still in the spot market. The meaning of spot market means that traders require that all the completed transactions must be transferred after the transaction is completed, and the money and goods of both parties are clear, so as to realize the transfer of ownership. Therefore, traders are required to fully invest when entering the securities and stock markets. At the same time, his trading behavior in the market must be to buy first and then sell. When you don't have stocks, you can't go into the market to short. Moreover, the domestic stock market has just started, with long investment cycle and low return on investment.

(3) In the futures market, futures exchanges are open to the whole society through brokerage companies and brokers. Individuals and collective enterprises can easily participate in futures trading. Futures trading is a more radical venture capital. Because of its high risk, the trading system and trading mode of futures trading also provide us with better ways and measures to prevent risks. Futures trading implements a margin trading system, which is what we usually call "small and broad", that is, leveraged trading. Futures investment transactions only need a little capital investment, usually 5- 15% of the total value of commodity contracts, and the handling fee is only about one tenth of that of stock transactions. Futures trading also has a price limit, but due to different types of contracts, the price limit ranges from several hundred points to more than one thousand points. At the same time, futures trading adopts a two-way trading model, which means that no matter whether the futures contract price goes up or down, there are opportunities for profit. For example, when the futures price rises, we can buy at a low price first, and then sell and close the position after the price rises. For example, when the price of mung bean futures rises from 33,700 to 34,000, we can make a profit of 300 points. If the futures price is falling, you can sell it at a high level first, then wait until the futures price falls, and then buy it at a low level to close the position, which can also make a profit. For example, the mung bean futures price dropped from 33,900 to 33,600, and we can also make a profit of 300 points. This is impossible in stock trading. In addition, the characteristics of futures investment transactions determine that futures prices fluctuate greatly and frequently, which is also the key to futures investment risks, but it also provides us with many opportunities for profit. As long as the trading funds are reasonably allocated, the trading strategy of futures investment is effectively grasped, and the measures to avoid risks are flexibly used, the risks brought by this can be completely resolved. There is also arbitrage trading in futures trading, that is, when the price difference between two-month futures contracts of the same variety or related varieties is too large or too small, we can trade the two contracts in reverse, so as to achieve low-risk profit. So it goes without saying that the possible income from investing in futures is much higher than that from investing in stocks.

References:

http://www.dyqh.info/school.php

Responder: Zeng Baola-Trainee Magician Level 2 12-8 13:33.

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Futures practice is actually the basis of futures. Very general.

Interviewee: vrares 007- Scholar II12-1215: 47.

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(1) It is very difficult for individuals to invest in real estate, because real estate development often has strict requirements on the investment scale and cycle, and the investment scale is large and the cycle is long. The rate of return gradually decreases with the extension of time, which is greatly influenced by national policies. The current weak real estate development market has made many investors suffer from the backlog of funds and the burden of triangular debts.

(2) In recent years, stocks and securities have become a noticeable phenomenon in China's economic life. "Stock speculators" can be said to be a huge team, but at present, China's stock securities are still in the spot market. The meaning of spot market means that traders require that all the completed transactions must be transferred after the transaction is completed, and the money and goods of both parties are clear, so as to realize the transfer of ownership. Therefore, traders are required to fully invest when entering the securities and stock markets. At the same time, his trading behavior in the market must be to buy first and then sell. When you don't have stocks, you can't go into the market to short. Moreover, the domestic stock market has just started, with long investment cycle and low return on investment.

(3) In the futures market, futures exchanges are open to the whole society through brokerage companies and brokers. Individuals and collective enterprises can easily participate in futures trading. Futures trading is a more radical venture capital. Because of its high risk, the trading system and trading mode of futures trading also provide us with better ways and measures to prevent risks. Futures trading implements a margin trading system, which is what we usually call "small and broad", that is, leveraged trading. Futures investment transactions only need a little capital investment, usually 5- 15% of the total value of commodity contracts, and the handling fee is only about one tenth of that of stock transactions. Futures trading also has a price limit, but due to different types of contracts, the price limit ranges from several hundred points to more than one thousand points. At the same time, futures trading adopts a two-way trading model, which means that no matter whether the futures contract price goes up or down, there are opportunities for profit. For example, when the futures price rises, we can buy at a low price first, and then sell and close the position after the price rises. For example, when the price of mung bean futures rises from 33,700 to 34,000, we can make a profit of 300 points. If the futures price is falling, you can sell it at a high level first, then wait until the futures price falls, and then buy it at a low level to close the position, which can also make a profit. For example, the mung bean futures price dropped from 33,900 to 33,600, and we can also make a profit of 300 points. This is impossible in stock trading. In addition, the characteristics of futures investment transactions determine that futures prices fluctuate greatly and frequently, which is also the key to futures investment risks, but it also provides us with many opportunities for profit. As long as the trading funds are reasonably allocated, the trading strategy of futures investment is effectively grasped, and the measures to avoid risks are flexibly used, the risks brought by this can be completely resolved. There is also arbitrage trading in futures trading, that is, when the price difference between two-month futures contracts of the same variety or related varieties is too large or too small, we can trade the two contracts in reverse, so as to achieve low-risk profit. So it goes without saying that the possible income from investing in futures is much higher than that from investing in stocks.