Futures contract is a standardized forward contract formulated by the exchange, which stipulates that the corresponding futures products will be traded at a certain time and place with certain data specifications. This standardized contract is useful. So, for the market, trading is oh, oh and market liquidity.

On-site centralized bidding transaction

Futures prices are generated by centralized bidding by floor traders, so they are not like stocks with bookmakers in nature and are difficult to be manipulated. However, the influx of a large amount of funds will also have a huge impact on the fluctuation of the futures market, which is inevitable. But the futures market is relatively fairer than stocks and can be manipulated.

Margin trading

Futures margin trading is one of the souls of futures. With the margin system, investors will have the opportunity to be small and broad. There are opportunities for profiteering, and the general margin is around 10%. In other words, you can use your money as 10 times for the futures market, but you must have a margin to ensure that you have enough funds to continue making orders.

Two-way transaction

The stock market is a one-way transaction, buying low and selling high. The futures market is a two-way transaction, and it can be short or long, which is more flexible. The act of establishing multiple positions is called "buy more" and the act of establishing short positions is called "short selling". Two-way trading is beneficial to futures. Plus futures products also include stock index futures, that is to say: you can't short in the stock market, but you can short in the futures market. Of course, it is only the overall stock index (CSI 300, CSI 50, etc.). ).

Hedging settlement

After opening a position in the futures market, traders will only make physical delivery through the spot when the contract expires, but most of the time they will not end the transaction like this. But with the hedge. In other words, the opposite position is established to relieve the contractual liability. Therefore, in the futures market, futures contracts have high liquidity.

No debt settlement on the same day (mark to market day by day)

At the end of each day, the plenary session of the futures market will calculate the contract profit and loss of traders according to the settlement price of the day. Direct transfer of corresponding funds and recalculation of deposits to ensure that there is no debt on that day. This is the securities operation in the future futures market. However, because the closing price of the day is generally not the closing price, but the weighted average, many investors are dissatisfied.