The so-called hot coil 2 105 is the May hot coil futures contract 2 1. The hot coil here is a hot-rolled coil, which is made of slab (mainly continuous casting slab) as raw material, heated and made into strip steel by roughing mill and finishing mill. Here 2 105 represents the corresponding time, that is, the May futures contract of 2 1.

Formulation and trading of futures contracts;

A futures contract refers to a standardized contract made by a futures exchange and agreed to deliver a certain quantity and quality of goods at a specific time and place in the future.

It is the object of futures trading, and the participants in futures trading transfer the price risk and obtain the risk income by buying and selling futures contracts on the futures exchange. Futures contracts are developed on the basis of spot contracts and spot forward contracts, but their most essential difference lies in the standardization of futures contract terms.

Futures contracts traded in the futures market are standardized in the quantity, quality grade, delivery grade, premium standard of substitutes, delivery place and delivery month, which makes futures contracts universal. In the futures contract, only the futures price is the only variable, which is generated by public bidding in the transaction.