Futures is a standardized contract for trading in an exchange, which stipulates to trade a certain quantity (contract size) of a certain commodity at a certain price (futures price) at a certain time (delivery date) in the future. The Futures Trading Law stipulates that the legal nature of futures trading is the first problem to be solved in the study of futures trading. There are two opinions on this issue. The first view is that futures trading belongs to the traditional contract relationship of goods sale, although it has certain particularity; Another view is that futures trading is obviously different from traditional goods trading and can no longer be classified as goods trading. From the following comparison between futures trading and traditional commodity trading, it can be seen that it is not appropriate to compare the relationship between traditional commodity trading and futures trading with universality and particularity. First, the purpose is different. The traditional sale of goods is to obtain the subject matter of the contract as the transaction purpose. In futures trading, although investors who buy contracts can't close their positions when the contracts expire, traders who sell contracts have the obligation to deliver if they can't close their positions before the contracts expire. Although physical delivery also exists in futures trading, this phenomenon is rare. Generally speaking, only about 2-3% of contracts need to complete the transaction by actually delivering the goods. In futures trading, due to the frequent reversal of contracts, the turnover of commodities is often astronomical, which greatly exceeds the circulation of the spot market. It is impossible to understand this phenomenon from the perspective of traditional commodity trading. Second, contracts are formed in different ways. Traditionally, buyers and sellers negotiate directly and reach an agreement on the terms of the contract. Offer and acceptance are the necessary stages of contract establishment. However, if this trading method is moved to futures trading, the behavior of both parties to the transaction just constitutes a violation of trading rules. In futures trading, buyers and sellers don't meet each other, and they all trade through brokers in the market. The buyer (seller) doesn't know or care who the seller (buyer) is, his reputation and the quality of the goods, which are the key factors that determine the success of the sale in traditional commodity trading. In the traditional commodity trading relationship, the transaction price is determined by both parties through consultation; The price of futures trading is a competitive price reached after full competition, and all transactions must be reached on the exchange through open competition and public bidding by floor brokers. One-on-one transactions are prohibited by law. It is precisely because of this trading mode that the disadvantages of traditional trading mode, such as fraud, coercion and taking advantage of others' danger, are avoided to some extent, which is helpful to realize the price discovery function of futures trading. Third, trading places is different. The law has no restrictions on the place where traditional commodity trading can reach an agreement, and futures trading must be completed in the futures exchange. OTC trading is prohibited by law. Fourth, the subject matter of the contract is different. Commodities traded in traditional commodities may not be suitable for futures trading, and futures commodities may not be able to be traded in spot. Generally speaking, futures commodities should have the following characteristics: 1. The quality, grade and specifications of commodities are easy to determine; 2. Futures commodities must be commodities with large trading volume and fluctuating prices; 3. Futures commodities must be commodities with many buyers and sellers; 4. Futures commodities must be commodities that can be stored for a long time and are suitable for transportation. In addition, since 1970s, financial futures have started to rise and developed rapidly. Exchange rate, interest rate and stock index have all become the objects of futures trading, and even option trading has appeared, that is, futures contract option trading. These trading methods are impossible to trade in traditional commodity trading. Fifth, the degree of contract standardization is different. In traditional commodity trading, the terms of the contract are determined by the buyers and sellers through consultation, while the futures contract is a standardized contract. The quality, quantity, delivery time and delivery place of the traded goods are all fixed, and the only change is the price. The standardization of contracts is an important feature that distinguishes futures trading from traditional commodity trading. The appearance of format contract simplifies the transaction procedure, reduces the transaction cost, and prevents disputes and disputes arising from different understandings of contract terms to some extent. More importantly, standard contracts provide convenient conditions for a large number of speculative activities in futures trading, which is of great significance to the development of futures trading. Laws and regulations In order to protect investors' own interests, some existing laws and regulations are listed as follows for reference. The State Council issued the Interim Regulations on the Management of Futures Trading, which will take effect on 1 September, 19991day. Measures for the Administration of Futures Exchanges, Measures for the Administration of Futures Brokerage Companies, Measures for the Administration of Employees in Futures Industry and Measures for the Administration of Qualifications of Senior Managers in Futures Brokerage Companies were all promulgated by the China Securities Regulatory Commission and came into force on 1 September, 19991day. Option: There are three situations in which the option can be executed: 1. Both buyers and sellers can perform the contract by hedging. 2. The buyer can also perform the contract by converting the option into a futures contract (obtaining the corresponding future positions at the execution price level stipulated in the option contract). 3. Any expired unused options will automatically become invalid. If the option is virtual, the option buyer will not exercise the option before the option expires. In this way, the option buyer loses the premium paid at most. The above is an introduction to the legal provisions of futures trading.