China launched the pig futures at this time, obviously in order to make it serve? Pigs? The core of this industry entity is to reduce risks for pig farmers.
Firstly, the concept of pig futures is introduced. Many netizens, right? Futures? I don't know much about the concept of science. Let me briefly introduce the common sense in this respect.
Futures? , not the kind we usually understand? Commodities? , but? A contract to complete the delivery of goods at some time and place in the future? This kind of contract can be clearly marked as a financial product like stocks, and can be traded and circulated in the futures market. We call it contract financial product futures.
However, it is worth mentioning that although individual traders can participate in futures trading, they cannot complete physical delivery and will be forced to close their positions before futures expire. Only legal person traders can complete physical delivery.
For example, the pig futures mentioned above, if you are an individual trader, do you buy it? Pig 2021February futures? And until the trading day before the end of 202 1 1, you still haven't sold this futures product, so your futures will be closed for money before the futures expire. And if you are a legal person trader, then you need to fulfill the contract in February, that is, to pick up the goods.
Second, pig farmers can lock in risks through pig futures. Are you sure after reading the story above? Pig futures? I have some understanding of this concept, but I may still be a little confused.
Why does pig futures reduce the breeding risk of pig farmers?
The answer is actually very simple. As long as we look at the concept of futures, we know that pig futures can help people predict the future price of live pigs. In other words, pig farmers can completely adjust the pig breeding cycle through the price trend of pig futures. Seek good fortune and avoid evil? .
Besides, even if something happens to the pig industry, El Nino event? Under the premise of the existence of pig futures, the interests of farmers can also be obtained? Value preservation? .
This is also a very important impact of the official listing of live pig futures on the live pig market.