1, the function of avoiding price risk. The most prominent function of the futures market is to provide producers and operators with means to avoid price risks, that is, producers and operators can hedge in the futures market, avoid the risks brought by price fluctuations in spot transactions, lock in production and operation costs and realize expected profits. In other words, the futures market makes up for the shortage of the spot market.
2. Discover the role of price. Under the condition of market economy, prices are formed according to market supply and demand. Traders from all directions in the futures market have brought a lot of supply and demand information, and the transfer of standardized contracts has increased market liquidity. The price formed in the futures market can truly reflect the supply and demand situation, and at the same time provide a reference price for the spot market, which plays the role of "discovering prices".
3. Pricing function. The international futures market is often a worldwide pricing center with pricing function. For example, CBOT has become the world soybean pricing center. China is a major producer and consumer of bulk agricultural products. With the development of the futures market, the pricing function of China futures market will become increasingly apparent.
4. Risk investment and resource allocation functions. Futures provide investors with the function of obtaining risk return, including hedging, hedging profit and futures speculation. At the same time, the rapid information transmission, strict performance guarantee, fair and open centralized bidding and simple and fast trading methods in the futures market can comprehensively, quickly and effectively smooth out unreasonable regional price differences and achieve the effect of resource allocation.