Futures contracts are concluded under the organization of futures exchanges and have legal effect. Prices are generated through public bidding in the trading hall of the exchanges. Most foreign countries adopt public bidding, while our country adopts computer trading. Contracts can be performed or terminated by spot settlement or hedging transactions.

1. What are the basic knowledge of futures?

(1) 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.

(2) The delivery date of futures can be one week later, one month later, three months later or even one year later. A contract or agreement to buy or sell futures is called a futures contract. The place where futures are bought and sold is called the futures market.

(3) Investors can invest or speculate in futures. Most people believe that improper speculation in futures, such as short selling without goods, will lead to financial market turmoil. This is an incorrect view. Going long and shorting at the same time is a healthy and normal trading market.

(4) The standardized contract uniformly formulated by the futures exchange stipulates that a certain quantity and quality of the subject matter shall be delivered at a specific time and place in the future.

Second, the futures commission.

(1) is equivalent to the commission in the stock. For stocks, the expenses of stock trading include stamp duty, commission and transfer fees. Relatively speaking, the cost of engaging in futures trading is only the handling fee.

(2) Futures handling fees refer to the fees paid by futures traders according to a certain proportion of the total value of the completed contracts after buying and selling futures.

(3) Futures settlement: refers to the fund settlement of trading gains and losses of both parties according to the settlement price announced by the futures exchange.

(4) Futures delivery: refers to the process that when a futures contract expires, according to the rules and procedures of the futures exchange, both parties to the transaction finally close the contract by transferring the ownership of the goods contained in the futures contract.