1. The futures market is a two-way transaction. Compared with other entities, in stock trading, in addition to the traditional way of making money by buying low and selling high, there are also forms of selling high and buying low. Therefore, it is unnecessary to profit from short positions, open positions at high positions and close positions at low positions. Short-selling natural persons can do it, enterprises can do it as legal persons, and enterprises can also speculate, not just hedging.
2. Short sellers take money to close their positions, take money if they can't buy the goods, sell them with contracts before using the money, or send them to the delivery warehouse if they want to deliver them, even if the goods are more expensive than what you sold before. With exchanges and laws, the interests of bulls can be fully guaranteed. This is also the reason why the futures market is safer than the current commodity market.
The recommended answer says that natural persons must close their positions before the delivery month. The sell order will be forced to close the position.
4. After answering the question, you will not only lose 100, but also exceed 100. If the decline exceeds 10%, the futures company may lose money. Of course, futures companies will not let this happen.
If your understanding is wrong, as long as it is futures, it will have the function of hedging. Because futures must have spot, spot plus future time becomes futures, and the uncertainty of future time determines the uncertainty of price. Different demands for price fluctuations lead to the existence of multiple short positions, which also leads to the existence of hedging and speculation. Therefore, similar to the futures market, the trend of bond futures betting on interest rates and the trend of stock index futures betting on macroeconomics all have casino elements, but they are not just casino elements, at least more complicated than casinos.