In the past, after many corn merchants bought this year's corn, there were risks: 1, corn was harvested everywhere, so the market price was likely to lose money, and the corresponding purchase price would be very low. 2, corn harvest, then the market price soared, the corresponding purchase price also rose.
This has produced uncontrollable factors. Through futures trading, buyers can negotiate the purchase price this year and next year, and pay a certain margin. By next year's harvest, you can ensure that no matter what kind of harvest, you can buy corn with stable prices. Accordingly, if there is a bumper harvest of corn next year, some buyers will give up buying corn in the form of loss margin. If you get less, of course you earn more.
This is the initial embodiment of futures.
Today's futures mainly play a role in hedging risks for businesses with a large amount of cash in the spot market. For example, a merchant has 50W tons of steel, and now the steel market is very depressed. It is estimated that the price will drop from 5,000 yuan to 4,000 yuan next year, so a merchant can choose to sell the forward futures of next year in the futures market and lock the transaction price of this year at 5,000 yuan, which means that there will be no loss.
Who is losing money? Of course, it is businessman B who deals with businessman A.. Businessman B here represents an optimist who thinks that the economy will recover next year and the price of steel will rise.
If the market really picks up, the price of steel will be above 5500 yuan. At this time, businessman B (speculator) will transfer the price difference of 500 yuan a ton empty-handed.
In the futures market, margin is used for trading, so it has a great capital amplification effect. 1W can be converted into 15W steel in the spot market according to 15% contract gold as the deposit!
What is said here is more popular, so there will be some loopholes, but I hope the landlord will give extra points!