A commodity exchange is a place where buyers and sellers get together for futures trading. It is a non-profit organization, which aims to provide places and trading facilities for futures trading, formulate trading rules and act as the organizer of trading. It does not interfere with futures trading activities or the formation of futures prices. Commodity exchanges have strict and detailed regulations on trading methods, settlement and guarantee, contract transfer or hedging, risk treatment and physical delivery, and no individual or organization may violate them.
(2) The transactions of commodity exchanges are characterized by brokers.
Instead of buyers and sellers who actually need to buy and sell futures contracts meeting directly at the exchange, floor brokers, that is, market representatives, trade on behalf of all buyers and sellers at the futures exchange. Traders give orders, and all trading orders are finally executed by market representatives.
(3) The transactions of commodity exchanges are characterized by standardization and simplification.
Trading in a commodity exchange is carried out by buying and selling futures contracts. Both parties to the transaction do not rely on spot, but on established standardized futures contracts. This standardization means that the grade, quantity and specifications of the traded goods are all predetermined, and only the price is changed.
(4) The objects of commodity exchange transactions have the characteristics of specialization.
Trading in a commodity exchange is a special way of trading. Not all commodities can enter the commodity exchange for futures trading. The goods listed on the exchange are usually those that "meet the recognized quality standards, are suitable for bulk trading, can be stored for a long time and can be traded freely".
(5) The transactions of commodity exchanges are characterized by centralization.
Futures trading is conducted in an organized and orderly trading place, which can provide open trading prices and unified trading rules. Through this centralization, information flow, price fairness and transaction fairness can be realized. Transaction method:
The exchange adopts an innovative spot continuous trading mode, and through the advanced electronic trading system of the exchange, traders can realize spot contract trading by stages and choose the delivery date independently.
1, truly form the daily spot price: an open, transparent, convenient and fast electronic trading platform with powerful price discovery function, and obtain authoritative and influential commodity prices through centralized bidding by a large number of traders.
2. Meet all kinds of trading needs:
Investment demand: traders can achieve the purpose of long-term positions by paying a small amount of deferred compensation fees, and can follow the long-term trend to earn investment profits.
Demand for value preservation: traders can open positions in advance to lock in the purchase cost or sales price of their own enterprises according to the judgment of price trend.
Physical delivery demand: you can apply for physical delivery every day, which is very convenient for spot merchants to deliver.
3. Improve the utilization rate of funds
By using 20% margin trading method and 5 times the leverage of trading funds, the capital cost is greatly saved and the capital utilization rate is improved.
With T+0 trading method, funds can be used repeatedly in the same day's trading.
4. Realize two-way transaction.
You can be not only long but also short. Whether it is a bull market or a bear market, there are opportunities for investors to make profits.
5. Provide 24-hour electronic trading services covering major global financial markets.
Meet the needs of investors participating in market transactions across time zones;
It provides conditions for investors to effectively avoid the risks caused by sharp fluctuations in cross-market prices.
Advantages of settlement method:
1, simple and convenient entry into the market: strategic cooperation with major commercial banks across the country, covering all banking outlets across the country, facilitating traders' account opening and trading behavior;
2. Security of fund custody: ensure the security of transaction funds through third-party depository;
3. Convenient remittance and transfer of funds: The trading margin deposit and transfer system jointly developed by the exchange and the bank has realized convenient real-time trading margin.
Advantages of listed varieties:
According to the national interests and the needs of market demand, the Exchange will continuously and timely introduce standard spot trading varieties that meet the national strategic interests and meet the needs of domestic and foreign markets in the professional fields such as petrochemical commodities, metal commodities, coal and other energy commodities.