Futures, compared with spot, is essentially a forward sales contract. For example, you have 1000 tons of steel in your hand, and now the market is not good and you can't sell it. You can sign a contract to sell it for a few months first, and lock in the selling price to prevent further losses.

In the modern futures market, standard futures contracts (contracts) are bought and sold in regular futures trading with a certain margin (generally 6%-20%).

Due to the large number of participants and the cash delivery system (or cash settlement, but basically there are spot reference settlement standards), the future price trend can be predicted to some extent, and futures English itself is futures.

Advantage 1: It takes up less capital, and uses 654.38+00,000 to do 654.38+00,000 things;

Second, it can be traded in two directions, so that at the right time, it can be operated in reverse with spot trading to hedge spot risks.