Futures, corresponding to the spot, are derived from the spot, usually referring to futures contracts. Futures trading is the buying and selling of futures contracts. Take the future rebar 1 1 10 as an example, which is a order to be cut in October11June. When you buy a rebar, it is equivalent to signing a bill and having the "control" of this rebar.

Characteristics of futures trading

1. Contract standardization.

Futures contracts are standardized forward contracts formulated by exchanges, and the quantity, specifications, delivery time and place of the subject matter are all established. It brings great convenience to futures trading, saves transaction costs and improves transaction efficiency.

2. Centralized trading futures trading must be conducted in the futures exchange. The futures exchange implements the membership system, and only members can enter the market for trading. Those customers who want to participate in futures trading can only entrust futures brokerage companies to trade as agents.

3. Two-way trading and hedging mechanism.

Two-way trading, that is, futures traders can buy futures contracts as the beginning of futures trading (called buying positions) or sell futures contracts as the beginning of trading (called selling positions), commonly known as "short selling".

Hedging mechanism, more contracts are hedged before the delivery date, without direct spot delivery.