1. The function of futures is price discovery and avoiding the risk of spot price fluctuation. Why is futures derived from spot? Futures, literally, are expectations and expectations. Therefore, the expectations of enterprises and individuals participating in the futures market for future prices will be reflected through futures prices. For example, everyone expects the future price to rise and buy in advance, so now the price will start to rise, which means that the future price will be reflected in advance. Enterprises can guide production and operation through this kind of reflection and avoid blindness. In addition, the combination of futures market and spot market can also avoid the risks brought by spot price fluctuation to enterprises to a certain extent.

2. Futures companies are platforms for investors to participate in the futures market, providing investors with trading software, market platforms and information, and providing investment reports and other services. Customers need to pay handling fees for transactions, which is the main source of income for futures companies.

The landlord didn't make it clear that there was a problem. If your company deals in copper, it depends on whether copper is the final product or the processing raw material for you. If it is the final product, there is really no need to hedge when the price is bound to rise, because the price increase is beneficial to you. But what if copper prices fall? This should be the producer's greatest concern. At this time you can sell and hedge in the futures market. First sell copper futures contracts in the futures market (because of the unique hedging mechanism of futures, there is a trading method of selling first and then buying. Leave a message if you don't understand), when the product is sold in the spot market, it will be closed in the futures market at the same time. Because of the price drop, the spot is losing money, but the futures are bought at a low price because of the high selling price, thus fulfilling the obligations stipulated in the futures contract. The bid-ask spread in futures is positive and profitable, which makes up for the loss of spot to some extent. To a certain extent, the spot price has been improved and the competitiveness of the company's products has been improved. In addition, hedging can not only judge whether hedging is successful by looking at the profit and loss of the futures market, but should look at the final overall profit and loss by combining the two markets. Basically, hedging is something you worry about and do. Buy in the futures market if you are worried about rising prices, and sell if you are worried about falling prices. Contrary to the spot price, the risk of spot price fluctuation is locked. If the current market is in the same direction, it is not to avoid risks if you want to make a big profit and lose a big sum. The essence of hedging is not to make money, but to avoid and lock in the risk of price fluctuation, so that enterprises can concentrate on production and operation instead of investing too much energy to predict prices. This also shows the guiding role of futures in enterprise production.

4. Personal investment, because futures have a leverage mechanism. In other words, in the futures market,1million is equivalent to1million. So when the return rate of 1 10,000 is 10%, that is, the return rate of futures is 1 10,000, and the capital you invest is 1 10,000, then the return rate is 100% for your investment. Then, when the price in futures rises by 1 times, your investment actually increases by1times. In addition, the futures market does not limit the number of transactions during trading hours, and it can also trade in two directions, which is very flexible and provides convenience for individuals to control risks. When you buy, but the price falls, you can immediately recognize the loss and avoid greater losses. In other words, futures are highly liquid. Suppose you buy a house and the house price falls. You can't sell the house for a few seconds with a little mouse click on the Internet. Therefore, if individuals invest in futures, they should make good use of the advantages of flexible mechanism and leverage, and they can get more benefits.