(1) Value discovery: the price change of financial derivatives depends on the price change of the underlying variable. The price discovery function of financial derivatives is conducive to the target price more conforming to the law of value and the reasonable adjustment of the spot market price. The prices of spot market and futures market are closely related and positively correlated to some extent. The market supply and demand of financial derivatives can often help the spot market to establish a balanced price and form a reasonable price system that can reflect the real supply and demand relationship and commodity value.
(2) Risk transfer: Financial derivatives trading is to package the trading risks in the spot market to create new derivative financial assets and financial instruments, and finally transfer the financial derivatives and risks to other economies holding financial derivatives. The emergence of financial derivatives only reduces the risks of some economic activities and transfers the risks to other economic sectors in a new way, so the total risks of the economic system have not been reduced.