Physical futures refer to futures contracts with actual commodities or goods as the subject matter. This kind of futures contract usually comes from the upstream of the production logistics chain, such as agricultural products, metals, oil and other commodities. By purchasing these futures contracts, investors can gain the rights and obligations to deliver the subject matter in the future, thus participating in the market.

Physical futures trading is characterized by simplicity, controllable risks, preservation and appreciation, avoiding arbitrage and speculation in virtual trading. Physical futures can not only meet the actual demand, but also help producers and consumers to fix or lock the prices of their raw materials or final products in market changes and price fluctuations, thus playing the role of value preservation and risk control.

Unlike stocks and other securities, physical futures need the support of infrastructure such as logistics and warehousing. At the same time, as a physical object, it also needs sufficient supply guarantee. Therefore, investors need to consider factors such as commodity attributes, seasonality and scale expansion when choosing physical futures, and carefully grasp the macroeconomic cycle and market changes. At the same time, we should pay attention to the delivery method of the contract, whether it is physical delivery or cash delivery, in order to better understand the essence of physical futures.