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Introduction to futures investment
In 2005, the copper price in the international market fluctuated greatly, which triggered a series of discussions on the function, system setting, development path, supervision mode, risk management and trading mode of the futures market in domestic futures and economic theory circles. Everyone agreed in the discussion that commodity futures have two attributes, one is commodity attribute and the other is financial attribute, and with the development of international futures market, the financial attribute of commodity futures will become more and more obvious.
The financial attribute of commodity futures comes from the inherent characteristics of the futures market itself. Standardized contract, margin system and settlement system reveal the inherent financial attributes of futures market. The establishment of hedging mechanism makes futures contracts have the characteristics of capital security, and futures contracts are performed by delivery, which also has some characteristics of commercial paper. The credit system of effective monetary financing in the futures market is composed of the price limit system, the compulsory liquidation system, the daily debt exemption system and the margin system. Because of this credit system and the function of promoting monetary accommodation, futures market has the basic attributes or characteristics of financial market. Hedging is a kind of trading behavior, which can be closed by hedging and flat position. What hedgers should achieve is hedging in the futures market. ...