Futures is also a financial derivative.
When futures and swaps are combined, new derivative transactions can be generated: futures swaps and iron ore swaps are such transactions, that is, iron ore futures are exchanged with a designated currency or unit of valuation, in which the currency or unit of valuation is generally US dollars, but it can also be IMF special drawing rights or gold.
For example, if a country applies for IMF SDR, it can participate in iron ore swap transactions in the trading market. After the swap, the original holder of the futures will exchange the corresponding cash according to the obtained SDR.
In fact, financial innovation lies in this, and its purpose is to increase liquidity and improve the operational efficiency of the real economy. Speculation is a derivative of financial innovation.
For many stock investors who often watch the market operation, we often see that a stock suddenly appears incredible intermittent heavy vo