Risks and benefits coexist, and futures are subject to a margin system, usually 10%. Take the rebar futures contract as an example. Thread 10 10 Contract current price is 4800. If you are optimistic about the later price increase of rebar, buy 1 lot (10 ton). Because of the deposit system, you only need to use 4800. Invest 4800 and make a profit of 2000.
As a raw material for producing crude steel, iron ore can be said to be the main cost factor. Rising costs and tight demand for raw materials will naturally affect steel futures prices. If you know the price of iron ore, it will be very helpful for you to judge the price trend of wire.