What is futures trading and its characteristics?
Futures trading is an advanced trading method based on spot trading, and then buyers and sellers sign forward contracts and wait until the trading day for delivery. Futures trading is the operation of buying and selling futures contracts. Because the contract itself is a standardized contract in a certain period or time in the future, according to the quantity and goods stipulated in the contract, the models and specifications in the contract are all determined. Futures trading has the following characteristics:
1, small and wide: investors should pay a deposit of 5% to 10% before they can buy and sell with less money;
2. Two-way trading: the futures market does not exist, and it can only be sold after buying. You can buy first or sell directly, which makes futures trading more flexible;
Don't worry about the credit problem: any futures trading is conducted in the designated futures exchange. No matter the buyer or the seller, there is no need to worry that the futures trading fails to fulfill the corresponding obligations on time, because some exchanges are making guarantees;
4. Open and transparent market: regularly announce the quantity, price and market changes of exchanges;
5. High efficiency: Futures trading is a very standardized transaction, and the procedures, rules and modes are fixed, so investors can trade according to the corresponding rules and processes.