Current location - Trademark Inquiry Complete Network - Futures platform - What does the main contract mean?
What does the main contract mean?
The main contract refers to the most active contract of a certain variety in the futures market. Most traders and institutional investors will choose to trade the main contract of this variety when trading, because this contract has the deepest market, the highest trading activity and the strongest liquidity. The main contract is usually determined by the exchange according to factors such as listing time, listing transaction scale and transaction activity, and its contract specifications are relatively stable, which is convenient for market participants to conduct transactions and risk management.

For traders and investors, choosing the main contract is helpful to improve the success rate and return rate of trading, because this kind of contract has high liquidity, traders can buy and sell quickly and the quotation is reasonable. In addition, choosing the main contract can also reduce operating costs, because its transaction costs and margin are lower than other contracts. For the exchange, the main contract is the embodiment of market value. The stronger the main contract, the greater the influence of the exchange in the market and the more obvious its competitive advantage.

To choose the right main contract, we need to know the activity and liquidity of this variety in the futures market first. This can be judged by the volume and position of this variety. Secondly, the transaction cost and margin of the main contract of this variety are also important factors in the selection, which need to be compared and analyzed to determine the maximum investment income. Finally, we need to consider the trading time, delivery rules, risk control and other factors of this kind of contract to ensure that the main contract we choose can match the trading strategy, reduce risks and realize benefits.