Futures trading refers to the trading activities of buying and selling futures contracts on futures exchanges. Futures trading is a new trading method developed by trading in the futures exchange on the basis of spot trading and standardized futures contracts. Buying and selling futures trading is also called establishing trading positions in futures market, short selling is called establishing long positions, and short selling is called establishing short positions. The trading behavior of starting to buy or sell futures contracts is called "opening positions", and the trading behavior of closing contracts in the hands of traders is called "closing positions" or "hedging". If the contract in the hands of the trader is not hedged according to the delivery month, then the short contract holder should prepare for physical delivery, and the long contract holder should prepare funds to accept physical delivery.

Worked as an intern in a futures brokerage company for a month and also participated in simulated trading.

Try to explain it in a non-technical way:

(1) After investors pay a deposit of 5%- 10% (the futures brokerage company seems to stipulate that it is 50,000 yuan), they can entrust a brokerage company to act as an agent for futures trading.

It should be noted that the object of futures trading is standardized contracts, such as 10 ton standardized strong gluten wheat contract.

(2) Buying low and selling high or selling high and buying low.

For example, strong gluten wheat is bought at the price of 1 1,000 yuan/ton (first-hand 10 ton wheat), and the position is closed at the price of 1 100 (that is, reverse trading is sold), excluding the handling fee of 2 yuan/hand (1kloc).

Similarly, if you sell a hand at the price of 1050 yuan/ton, you can close your position at the price of 1000 yuan/ton (that is, buy it in reverse), and you can make a net profit (1050-1000) */kloc.

(3) The contract has a certain execution period. For example, if you buy or sell strong gluten wheat contracts in June or September, if you don't hedge before September (that is, buy or sell one), you must make physical delivery, that is, you buy 10 tons of wheat in kind and sell 10 tons of wheat.

Basically, the websites of futures brokerage companies have software to simulate operations and watch real-time market. You can simulate the operation first if you are interested.