The introduction of futures is as follows:
Futures and spot are completely different. Spot is actually a tradable commodity. Futures are mainly not commodities, but standardized tradable contracts with some bulk products such as cotton, soybeans and oil and financial assets such as stocks and bonds as the targets. Therefore, the subject matter can be commodities (such as gold, crude oil and agricultural products) or financial instruments.
Futures is a financial contract, including financial instruments or the sale of physical goods for future delivery (usually on a commodity exchange). A futures contract is a contract for buying and selling futures, and it is a proof that both parties agree to trade at a specific time.
Futures is a trading method that spans time. By signing a standardized contract (futures contract), the buyer and the seller agree to deliver a specified amount of spot at a specified time, price and other trading conditions. Usually, futures are traded on futures exchanges, but some futures contracts can be traded over the counter through OTC.
Manual bidding means that the trading representatives in the trading hall trade by gestures, shouting, etc. Chicago CBOT is the most representative manual trading pool in the early days, and each variety is represented by day trading in the octagonal cascade.
Electronic trading refers to the automatic matching of sales contracts or orders according to trading rules, prices and orders by adopting a central computer trading system in the market. Traders can place orders in front of the approved computer system without crowding into a specific space for manual bidding.
Futures is a contract that must be fulfilled in the future, not a specific commodity. The content of the contract is unified and standardized, but the price of the contract will fluctuate in different sizes due to changes in various market factors.
The "goods" corresponding to this contract are called the subject matter. Generally speaking, the "goods" to be speculated in futures are the subject matter, which is embodied by contract symbols. For example, CU0602 is a symbol of futures contract, which means a contract delivered in February 2006, and the subject matter is electrolytic copper.