1. Open an account

After selecting the futures company, you can prepare to submit the entrustment application and open an account. Futures account implements real-name registration system registration, and customers are divided into natural person customers and legal person customers. Natural person customers must go through the account opening procedures by themselves and may not entrust others to do so. The futures account has no threshold and is completely free.

place an order

There are four ways to order futures: written order, telephone order, online order and self-service terminal order. The trading instructions for placing an order include: futures trading variety, trading direction, quantity, month, date and time, and price. If you are optimistic about the price of goods in the market outlook and are ready to do more, you will choose to place an order and buy a position. If you are bearish on the commodity prices in the market, you will choose to sell and open a position in the direction of placing an order.

offer a price

There are two bidding methods: public bidding and computer matching. The trading system will close the transaction according to the priority order of the declared price from high to low, and then the declared time. The opening and closing prices are generated by call auction.

Settle accounts

At the time of settlement, the profit and loss account of the trading account shall be cleared and transferred according to the settlement price announced by the futures company. Settlement includes settlement of members by exchanges and settlement of customers by futures companies.

pay

There are two ways of futures delivery: physical delivery and cash delivery. Commodity futures delivery is generally physical delivery, and for futures contracts such as financial futures that cannot be delivered in kind, cash delivery is generally adopted.

Futures, completely different from spot, are actually tradable goods (commodities). Futures are mainly not commodities, but standardized tradable contracts based on some popular products such as cotton, soybeans and oil and financial assets such as stocks and bonds. 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.