The unique hedging function of futures trading, the function of preventing excessive market fluctuation, the function of saving commodity circulation costs and promoting fair competition are of great significance to the development of China's increasingly active commodity circulation system.

Futures trading process:

Futures investors should have good psychological quality and risk-taking ability, strong will, strong self-discipline, be able to handle their trading business calmly and not be emotional. Futures investors should be able to calmly and calmly analyze and observe the rapidly changing price market and make reasonable decisions.

One reason why futures trading is attractive to investors is the leverage of futures trading, that is, controlling the overall value of futures contracts with relatively little funds, that is, trading with 5% to 10% of funds 100%. However, futures investors should fully realize that high returns are behind high risks. Therefore, people who step into the futures market should have a sense of taking risks and be prepared for possible losses.

In addition, because the rules and practices of futures trading and securities trading have many similarities and differences with general spot trading, people who enter the futures market should also understand and master some necessary futures trading knowledge. The procedures for entering the futures market are basically the same as those for the stock market. As far as customers are concerned, they usually handle their futures trading business through brokerage companies.

Futures investors should first open a futures trading account with a brokerage company, sign a standard Futures Trading Agreement, fill in the customer registration, and deposit the required deposit, so as to complete the account opening procedures.

Of course, according to the laws and regulations of futures trading, brokerage companies will also require investors (that is, customers) to provide correct and detailed financial information, so that brokerage companies can understand investors' financial status and investment purposes and determine whether futures are suitable for investors. Only qualified people can be allowed to open accounts. At the same time, the exchange also requires member brokerage companies to supervise the normal operation of client funds.

When a brokerage company accepts an investor to open an account, the investor can start futures trading as a customer.

The general process for customers to participate in futures trading is as follows:

( 1)

Futures traders enter and open accounts in brokerage companies, including signing power of attorney to authorize brokerage companies to buy and sell contracts and pay handling fees on their behalf. After being authorized, the brokerage company can handle futures trading according to the terms of the contract and the customer's indicators.

(2) After receiving the customer's instruction, the broker shall immediately notify the representative of the brokerage company in the exchange by telephone, telex or other means.

(3) The trading representative of the brokerage company stamps the received order and sends it to the market representative in the trading hall.

(4) On-site and off-site representatives input customer instructions into the computer for trading.

(5) After each transaction is completed, the on-site and off-site representatives shall notify the off-site brokers of the transaction records and inform the customers.

(6)

When the customer requests to close the futures contract, he should immediately notify the broker, who will notify the trading representative stationed in the exchange by telephone, hedge the futures contract through the on-site and off-site representatives, and at the same time liquidate it through the trading computer, and the broker will send the hedged net profit and loss statement to the customer.

(7)

If the customer does not close the position in a short time, it will generally be settled once a day or once a week according to the settlement price of the exchange on that day. If there is a loss in the book, the customer needs to temporarily make up the loss difference; If there is a book surplus, the broker will pay the profit difference to the customer. The actual profit and loss can only be settled after the customer closes the position.