Plastic futures is a kind of commodity futures, which provides hedging for spot traders. Spot traders buy or sell futures contracts with the same variety and quantity as those traded in the spot market, but in the opposite direction, in order to compensate for the actual price risk brought by the price changes in the spot market by selling or buying such futures contracts at some future time.

For speculators, plastic futures are just a variety of futures.

Extended data:

Characteristics of plastic futures trading:

First, two-way

One of the biggest differences between futures trading and stock market is that futures can be traded in both directions, and futures can be long or short. When the price rises, you can buy low and sell high, and when the price falls, you can sell high and buy low. Going long can make money, and shorting can also make money, so there is no bear market in futures. In a bear market, the stock market will be suppressed, while the futures market will remain unchanged and opportunities will still exist. )

Second, the cost is low

Futures trading countries do not levy stamp duty and other taxes, and the only cost is the transaction fee. The procedures of the three domestic exchanges are about two ten thousandths or three ten thousandths, plus the additional fees of brokers, and the unilateral handling fee is less than one thousandth of the transaction amount. Low cost is the guarantee of success.

Three. lever action

Leverage principle is the charm of futures investment. Futures market transactions do not need to pay all the funds, and domestic futures transactions only need to pay 5% margin to obtain future trading rights. Due to the use of margin, the original market has been enlarged ten times. Assuming that the daily limit of copper price closes on a certain day, the operation is correct. The return on capital is as high as 60%(3%÷5%), which is six times the daily limit of the stock market.

Baidu encyclopedia-futures