Futures and spot are completely different. Spot is actually a tradable commodity. Futures are mainly not commodities, but standardized tradable contracts with certain mass products such as cotton, soybeans and oil and financial assets such as stocks and bonds as the targets. Therefore, the subject matter can be commodities (such as gold, crude oil and agricultural products) or financial instruments.

The delivery date of futures can be one week later, one month later, three months later or even one year later. A contract or agreement to buy or sell futures is called a futures contract. The place where futures are bought and sold is called the futures market. Investors can invest or speculate in futures.

Generally speaking, it is a contract-based electronic trading investment, which can be bought and sold immediately, and can be used for ups and downs and margin trading. Extended data:

The role of futures:

Risk aversion function-hedging?

1. Based on the principle that the price trends of the futures market and the spot market are consistent, colleagues trade in the two markets, and use the gains generated in one market to make up for the losses in the other market, thus locking in production profits and production costs. This is an enterprise's use of the futures market for hedging. ?

2. Through futures trading, the hedger can transfer the risk of price fluctuation in the spot market to speculators seeking high-risk profits. ?

3. The futures market adopts "fair, just and open" centralized bidding transactions to generate futures prices that can reflect the future market supply and demand. Under the influence of mature futures market, futures companies often use futures prices as quotations for spot transactions.

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