Futures are relative to spot. Futures are the subject matter that is bought and sold now, but will be settled or delivered in the future. This subject matter can be gold, crude oil, agricultural products, financial instruments, financial indicators and other commodities. The delivery date of futures can be one week later, one month later, three months later or even one year later. A contract or agreement to buy or sell futures is called a futures contract. The place where futures are bought and sold is called the futures market. Investors can invest or speculate in futures. Improper speculation on futures, such as short selling stocks, will lead to financial market turmoil. The future in English is the future, which evolved from the word "future". It means that both parties to the transaction don't have to deliver the physical object at the initial stage of buying and selling, but agree to deliver the physical object at some time in the future, so China people call it "futures". The original futures [1] trading developed from spot forward trading. The initial spot forward transaction is that both parties verbally promise to deliver a certain number of commodities at a futures meeting. Later, with the expansion of the scope of transactions, oral promises were gradually replaced by sales contracts. This kind of contract behavior is becoming more and more complicated, which requires the guarantee of intermediary agencies to supervise the timely delivery and payment of goods. Therefore, the Royal Exchange, the world's first commodity forward contract exchange, opened in London on 157 1. In order to adapt to the continuous development of commodity economy, 1848, 82 businessmen initiated the establishment of Chicago Board of Trade (CBOT), with the purpose of improving transportation and storage conditions and providing information for members. 185 1 Chicago Board of Trade launches forward contracts; 1865, Chicago Grain Exchange introduced a standardized agreement called "futures contract" to replace the previous long-term contract. With this standardized contract, manual trading can be carried out, and the margin system is gradually improved, so a futures market specializing in standardized contract trading has been formed, and futures has become an investment and financial management tool for investors. 1882 exchange allows hedging to be exempted from performance obligations, which increases the liquidity of futures trading. The background of China futures market is the reform of grain circulation system. With the cancellation of the policy of unified purchase and marketing of agricultural products and the liberalization of most agricultural products prices, the market is playing an increasingly important role in regulating the production, circulation and consumption of agricultural products. The ups and downs of agricultural products prices, the undisclosed and distorted spot prices, the ups and downs of agricultural production, and the lack of value-preserving mechanism of grain enterprises have attracted the attention of leaders and scholars. Whether a mechanism can provide price signals to guide future production and operation activities and prevent market risks caused by price fluctuations has become the focus of attention. 1February, 988, the leaders of the State Council instructed relevant departments to study the foreign futures market system and solve the problem of domestic agricultural product price fluctuation. 1In March, 1988, the government work report of the First Session of the Seventh National People's Congress proposed: actively develop various wholesale trade markets and explore futures trading. It started the research and construction of China futures market. 19901kloc-0/2 Zhengzhou grain wholesale market was established with the approval of the State Council. Based on spot trading, it introduced the futures trading mechanism and took the first step in the development of China futures market. 199 1 Shanghai Metal Commodity Exchange opened on May 28th; 1991June 10, Shenzhen Nonferrous Metals Exchange was established; The first futures brokerage company, Guangdong Wantong Futures Brokerage Company, was established in September 1992, marking the resumption of China futures market after more than 40 years of interruption in China.