The original futures trading originated in Osaka, Japan in the16th century. The rice market in Japan has been developed. Until19th century, it was unique to Japan, and was gradually imitated by the whole world.
From 65438 to 0848, 82 businessmen in Chicago initiated the establishment of Chicago Board of Trade (CBOT) to reduce the risk of grain trading, and the establishment of CBOT marked the official start of futures trading. 1865
In 2006, CBOT launched a standardized contract and implemented a deposit system; 1882, CBOT began to allow the exemption of performance liability through hedging; 1925, Chicago Board of Trade Clearing Company (BOTCC
) was established, and at the same time, it was stipulated that all transactions of the Chicago Board of Trade should enter the clearing company for settlement. At this point, futures trading in a truly modern sense began to take shape.
The emergence of futures trading is not accidental, but based on the development of spot forward contract trading and the extensive commercial practice of commodity producers, traders and processors. From 65438 to 0833, Chicago has become the center of American domestic and foreign trade. After the Civil War, Chicago developed into a transportation hub because of its superior geographical location. By the middle of19th century, Chicago had developed into an important distribution center and processing center for agricultural products. There are a lot of agricultural products in Chicago, and people bargain face to face in the street according to the old trading method. In this way, the price fluctuates extremely sharply. In the harvest season, farmers all transport food to Chicago, and the oversupply in the market leads to a sharp drop in prices, which often prevents farmers from receiving freight. The following spring, food was scarce, and it was difficult for processors and consumers to buy food, and the price soared. Practice puts forward the need to establish an effective market mechanism, prevent the price from soaring and plunging, and establish more storage and transportation facilities.
In order to solve this problem, distributors in grain producing areas came into being. Local distributors set up enterprises, build warehouses, buy farmers' grain and sell it after the humidity of the grain reaches the specified standard. Local dealers buy farmers' grain through spot forward contracts, store it first, and then list it in batches. There are two problems in the local dealer's trade practice: he needs to borrow money from the bank to buy grain storage from farmers, and in the process of storage, he must bear the huge price risk of winter grain. Price fluctuation may make local dealers unprofitable or even unable to recover their costs. The best way to solve these two problems is to "sell first and then buy", and contact traders and processors in Chicago through forward contracts to transfer price risks and obtain loans. In this way, spot forward contract trading has become a common trading method.
However, traders and processors in Chicago are also facing the problems faced by local distributors, so they are only willing to pay local distributors at a price lower than their estimated forward price at the time of delivery to avoid the risk of price decline during delivery. Because the purchase price of traders and processors in Chicago is too low, local distributors who go to Chicago to negotiate long-term contracts have to find a wider range of buyers for their own interests and strive for a good price for their own food. Some non-grain merchants believe that it is profitable to buy forward contracts first and then sell them near the delivery date, thus making a profit. In this way, the gradual increase in the purchase of forward contracts has increased the income of local distributors, and the income paid by local distributors to farmers has also increased.
FX 168 futures information and market trends.