Futures, whose English name is futures, is completely different from spot. Spot is actually a tradable commodity. 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.
Financial innovation and reform of futures market and industry go hand in hand in many aspects, such as regulatory system reform, product expansion, business innovation and so on. In the aspect of regulatory system reform, it is mainly to promote the reform of handling fees, hedging, arbitrage, margin and position limit in the futures market to improve market efficiency.
In terms of product innovation, close to the needs of agriculture, countryside and farmers, develop more securities and futures products for agriculture and farmers, and develop financial products such as treasury bonds futures and stock options; In terms of business innovation, the CSRC supports the business innovation of futures companies, promotes the pilot of overseas brokerage business and customer asset management, promotes the pilot of specialized futures investment funds, and supports qualified futures companies to issue shares.
With the deepening of the reform of futures market and futures industry, the futures industry will enter the best period of development opportunities in history. In the short term, with the expansion of the market and the improvement of market efficiency, the futures industry is expected to usher in a turning point in performance; In the long run, with the comprehensive development of business innovation, the futures industry will continue to open.
Futures commission: equivalent to the commission in the stock. For stocks, the expenses of stock trading include stamp duty, commission and transfer fees. Relatively speaking, the cost of engaging in futures trading is only the handling fee. Futures commission refers to the fees paid by futures traders according to a certain proportion of the total contract value after the transaction.
Initial margin is the money that traders need to pay when they open new positions. According to the transaction amount and the margin ratio, that is, initial margin = transaction amount * adjusted margin ratio. At present, the minimum margin ratio of China's futures margin system is 5% of the transaction amount, which is generally between 3% and 8% internationally.