Futures exchange - the matching institution for futures trading. All futures trading must be conducted through the futures exchange.

Futures company - the agency between the futures exchange and the end customer, that is, the intermediary for futures trading. The futures company accepts the client's entrustment, issues the client's trading order to the exchange, and then returns the transaction results to the client. Futures companies provide customers with settlement and capital entry and exit services, and control customers' trading risks.

Non-futures company clearing members - that is, clearing banks, also known as "special clearing members", which provide clearing for futures companies that do not have (direct) clearing qualifications (clearing qualifications of China Financial Futures Exchange) services and assume settlement risks.

Comprehensive clearing members - they settle directly with the exchange themselves, and also provide settlement services for other futures companies that do not have clearing qualifications (of course they also bear the corresponding settlement risks). Extended information

1. Use small things to make big things happen. For futures trading, you only need to pay a performance deposit of 5-10% to complete several or even dozens of times of contract transactions. Due to the leverage effect of the futures trading margin system, it has the characteristics of "using small to gain big". Traders can use a small amount of funds to conduct large purchases and sales, saving a large amount of working capital.

2. Two-way transaction. In the futures market, you can buy first and then sell, or you can sell first and then buy. The investment method is flexible.

3. Don’t worry about contract performance. All futures transactions are settled through a futures exchange, and the exchange becomes the counterparty to any buyer or seller, guaranteeing each transaction. Therefore, traders do not have to worry about transaction performance issues

4. Market transparency. Transaction information is fully disclosed, and transactions are conducted through open bidding, allowing traders to compete openly on equal terms.

5. Tight organization and high efficiency. Futures trading is a standardized transaction with fixed trading procedures and rules, link by link, and efficient operation. A transaction can usually be completed within a few seconds.

Baidu Encyclopedia-Futures Trading