For example, you are a farmer and farm every year; But the harvest may be different every year; So your income is unstable?

On this premise, you come up with a way to sign a contract with the employer; No matter what the harvest is this year, he will buy it at the agreed price; This is the birth of futures; Forward contract.

But from the above, the birth of futures is used to avoid risks, not to make money.

Let's talk about profit and loss first;

You are still farming, and you have agreed with your employer to sell rice at the price of 2 yuan/Jin. As a result, this year's super bumper harvest, with a yield of 10,000 tons per mu; As a result, the market price became 0. 1 yuan/kg; If you hadn't signed the contract before, would you have lost all the money for buying milk powder now? But you have a contract, and your employer wants to buy it in 2 yuan/Jin; Do you make a lot of money at this time?

If there is no harvest instead of a bumper harvest, the market price will become 100/ kg; Your employer can buy it from you for only 2 yuan/Jin. He doesn't make a profit, don't you lose?

This example is not objective. If you want to know more, add Q.