Futures breakthrough method
I. Formation of the Futures Market
(1) Futures trading first sprouted in Europe. As early as in ancient Greece and Rome, central trading places and bulk barter transactions appeared. With the improvement of traffic conditions and the rise of modern cities, forward transactions have gradually developed into centralized market transactions.
(2) Futures trading sprouted from forward spot trading, and the evolution of trading methods, especially the centralization and organization of forward spot trading, laid the foundation for the emergence of futures trading and the formation of futures market.
(3) The standardized modern futures market was formed in Chicago, USA in the middle of19th century. See table 1- 1 for the development of the futures market.
Second, the relevant categories of the futures market.
(1) Futures correspond to and derive from the spot, usually referring to futures contracts. A futures contract is a standardized contract made by a futures exchange, which stipulates to deliver a certain number of subject matter at a specific time and place in the future. Futures contracts include commodity futures contracts, financial futures contracts and other futures contracts. The subject matter of a futures contract is a futures product, which can be a physical commodity or a financial product. Futures contracts with physical objects are called commodity futures, and futures contracts with financial products are called financial futures.
(2) Futures trading, that is, the buying and selling of futures contracts, is derived from forward spot trading and is a trading method corresponding to spot trading.
(3) The futures market is a place for futures trading, which is derived from the forward spot market and is a more organized and standardized market form corresponding to the spot market. The futures market in a broad sense includes exchanges, clearing houses, brokerage companies and dealers;
The narrow sense of futures market only refers to futures exchanges. The futures market is also the sum of various economic relations in futures trading.
(A) the development of the international futures market
The international futures market has generally experienced the process from commodity futures to financial futures, with the increasing variety of transactions and the expanding scale of transactions.
(B) the development trend of the international futures market
(1) Trading centers are increasingly concentrated.
(2) Reorganization and listing has become a trend.
(3) The merger of exchanges has intensified.
(4) The development of financial futures is unstoppable.
(5) The trading methods are constantly innovating.
(6) The competition of exchanges has intensified.
(C) the development of China futures market
(1) The background of China futures market. The emergence of China futures market originated from the reform and opening up in 1980s.
(2) Initial stage (1990- 1993). 1990 10, Zhengzhou grain wholesale market introduced futures trading mechanism, which started as the first commodity futures market in China. 1991June, announced by Shenzhen Nonferrous Metals Exchange. September, 1992, the first futures brokerage company in China? Guangdong Wantong Futures Brokerage Company was established.
(3) the rectification stage (1993? 2000).1993110. In October, the State Council issued the Notice on Stopping the Blind Development of the Futures Market, and started the first round of rectification. 1In August, 1998, the State Council issued the Notice on Further Rectifying and Regulating the Futures Market, and started the second round of rectification. From 65438 to 0999, there were three futures exchanges, namely Zhengzhou Commodity Exchange, Dalian Commodity Exchange and Shanghai Commodity Exchange.
(4) Standardization development stage (2000-present). At this stage, China futures market is moving towards legalization and standardization. In May 2006, the futures margin security depository institution? The establishment of China Futures Margin Monitoring Center has played an important role in effectively reducing the risk of margin misappropriation, ensuring the safety of futures trading funds and safeguarding the interests of investors.
In September, 2006, China Financial Futures Exchange was established in Shanghai, and in April, 20 10, Shanghai and Shenzhen 300 index futures were launched in due course, which indicated that China futures market entered a new stage of simultaneous development of commodity futures and financial futures.
Characteristics of futures trading
First, the basic characteristics of futures trading
(1) Contract standardization: saving transaction costs and improving transaction efficiency and market liquidity.
(2) On-site centralized bidding transactions.
(3) Margin trading (also called leveraged trading): Futures trading is characterized by high returns and high risks.
(4) Two-way transaction: the buyer opens a position (open position, short position) and the seller opens a position (short position).
(5) Hedging settlement: there is no need to deliver the spot, which improves the liquidity of the futures market.
(6) Debt-free settlement on the same day (mark to market day by day): once every E 1. If the trader's margin balance is lower than the specified standard, additional margin is required to achieve? No debt that day? . Debt-free day settlement can effectively prevent risks and ensure the normal operation of the futures market.
Two. Futures trading and spot trading
(1) contact information
Futures trading is based on spot trading, which is formed and developed only when spot trading develops to a certain extent and social and economic development reaches a certain stage. Without futures trading, the risk of price fluctuation in spot trading is inevitable; Without spot trading, futures trading will lose its foundation, and the two complement each other and develop together.
(2) Difference
(1) The delivery time is different.
(2) The transaction objects are different.
(3) The purpose of the transaction is different.
(4) The place and mode of transaction are different.
(5) Different settlement methods.
Three. Futures trading and forward spot trading
(1) contact information
Futures trading and forward spot trading belong to forward trading, and they all adopt centralized trading, open bidding and electronic trading.
(2) Difference
(1) The transaction objects are different.
(2) Different functions.
(3) Different ways of expression.
(4) Different credit risks.
(5) The deposit system is different.
Function and function of futures market
First, the function of avoiding risks.
(A) the hedging function of early futures market
The early futures market is actually a place for forward trading, which can stabilize the relationship between production and sales and fix the future commodity trading price, but it also has great limitations.
(B) the advantages of hedging in avoiding price risks in the modern futures market. In the modern futures market, the way to avoid price risk is completely different from forward trading? Hedge. Hedging refers to buying or selling commodity futures with the same quantity but opposite direction in the futures market, and hedging and closing positions by selling or buying futures contracts at some future time, thus establishing a profit-loss hedging mechanism between the futures market and the spot market.
The price discovery function means that the futures market can expect the future spot price changes and discover the future spot price. The futures market is a highly organized and standardized market, close to a completely competitive market, and the price formation mechanism is relatively mature and perfect, which can form a futures price that truly and effectively reflects the relationship between supply and demand. The price formed under this mechanism has the characteristics of openness, continuity, predictability and authority, which can be used as the trend of spot price change in a certain period in the future? Barometer? .
(3) The hedging principle of avoiding risks in the futures market
The basic principle of hedging and avoiding risks in the futures market is that for the same commodity, when the spot market and the futures market coexist, they will be influenced and restricted by the same economic factor at the same time and space, so the price changes in the two markets are generally consistent, and as the futures contract approaches delivery, the spot price and futures price tend to be consistent.
The participation of speculators is a condition of hedging.
Second, the function of price discovery.
(A) the process of price discovery
(1) Price signal is the basis of business decision.
(2) The price signals in the spot market are scattered and short-lived, which is not conducive to the correct decision-making of enterprises.
(3) The expected price is formed in an organized and standardized market.
(B) the reasons and characteristics of price discovery
1. Reason
(1) There are many participants in futures trading, which can represent the strength of both the supply and demand sides and contribute to the formation of fair prices.
(2) Most futures traders are familiar with a certain commodity market, with rich commodity knowledge, extensive information channels and a set of scientific analysis and forecasting methods.
(3) The transparency of futures trading is high, and the competition is open and fair, which helps to form a fair price.
2. Features
Price discovery has the characteristics of anticipation, continuity, openness and authority.
Third, the function of asset allocation.
(A) the reasons for asset allocation
(1) With the help of futures, you can hedge other assets.
(2) The leverage mechanism and margin system in the futures market make it more convenient and flexible to invest in futures.
(B) the principle of asset allocation
As an asset allocation tool, futures has its own advantages.
(1) Commodity futures can hedge the risks of spot assets through hedging, thus stabilizing returns and reducing risks.
(2) Commodity futures are a good hedging tool.
(3) Incorporating futures into the investment portfolio can achieve a better risk-return portfolio.
The role of futures market
(A) the role of the futures market in the macro-economy
(1) provides tools to disperse and transfer price risks, which helps to stabilize the national economy.
(2) Provide reference for the government to formulate macroeconomic policies.
(3) Promote the internationalization of domestic economy.
(4) contribute to the establishment and perfection of the market economic system.
(B) the role of the futures market in the micro-economy
(1) Lock the production cost and realize the expected profit.
(2) Enterprises can use futures price signals to organize spot production.
(3) The futures market can expand the spot sales and procurement channels.
The futures market urges enterprises to attach importance to product quality.
I. International futures market
Second, the domestic futures market
(a) the overall operation
2/KLOC-0 Since the beginning of the century, China's futures market has entered a stage of standardized development, the scale of futures trading has been continuously expanded, the futures variety system has been gradually enriched, and the functions of the futures market have been fully exerted. At present, China is already the largest commodity futures market in the world, and financial futures trading has also started.
(B) breed system cultivation
With the acceleration of innovation in China futures market, the futures variety system is becoming more and more perfect. Except for crude oil, other important commodities are traded in China.
(C) the development of the futures industry
With the steady development of the futures market, the overall strength and service level of China's futures intermediaries have been further improved, and their own strength has been significantly enhanced. In particular, the introduction of stock index futures has attracted many securities companies to acquire and hold futures companies, which has greatly enhanced the financial strength of futures companies. At the same time, the business scope of futures companies is also expanding, and the talent team of futures practitioners is growing.