Because futures trading is an open contract transaction of forward delivery goods, a lot of market supply and demand information is concentrated in this market, and different people come from different places and have different understandings of all kinds of information, which leads to different views on forward prices through open bidding.

In fact, the process of futures trading is a comprehensive reflection of the change of supply and demand relationship and the expectation of price trend in a certain period of time in the future. This kind of price information has the characteristics of continuity, openness and anticipation, which is conducive to increasing market transparency and improving resource allocation efficiency.

Extended data When buying or selling a certain number of spot commodities in the spot market, selling or buying futures commodities (futures contracts) with the same variety and the same quantity but in the opposite direction in the futures market will make up for the losses in another market with the profits in one market, thus avoiding price risks.

Futures trading can preserve the value because the spot price of a specific commodity is influenced and restricted by the same economic factors, and the price changes of the two are generally in the same direction. Due to the existence of the delivery mechanism, the spot price of futures contracts converges near the delivery period.

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