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What are the characteristics of gold futures?
1, suitable for storage. An economic function of the futures market is to allocate inventory in the spot market. Holders with large inventory can have two choices. As long as the goods don't decay or decrease during the holding period, they can sell the inventory now or keep it for later sale.

2. homogeneity. The obvious feature of futures contracts different from forward contracts is that the subject matter of transactions must be standardized commodities. If this homogeneity condition cannot be met, the exchange will not be able to settle accounts for different market participants.

3. Market fluctuation. Market volatility plays an important role in attracting two basic participants-hedgers and speculators-to enter the futures market.

4. Sufficient spot size. Futures commodities should have sufficient spot supply and demand.

5. Unlimited supply. Unlimited supply of goods has two meanings: first, the market is not controlled by the ruling party and may be monopolized; The second is that the distribution cost is lower.

6. OTC trading. Because there is no exchange as the guarantor of performance, the forward contract faces the risk of counterparty default, and the forward contract is only a bilateral agreement, so it is difficult to close the position before the settlement date, while the market participants in the futures market can hedge and close the position at any time before the delivery date.