The so-called futures trading refers to the trading behavior of buyers and sellers buying and selling futures contracts on the futures exchange. Futures trading is a new trading method developed by trading in the futures exchange on the basis of spot trading and standardized futures contracts. This transaction follows the principle of "openness, fairness and justice". Buying futures is called "short selling" or "long trading", that is, long trading, while selling futures is called "short selling" or "short selling", that is, short trading. Buying and selling futures trading is also called establishing trading positions in futures market, short selling is called establishing long positions, and short selling is called establishing short positions. The trading behavior of starting to buy or sell futures contracts is called "opening a position" or "establishing a trading position", the trader holding the contract is called "holding a position", and the trader closing a position for reverse trading is called "closing a position" or "hedging". If the contract in the hands of the trader has not been hedged by the delivery month, the short contract holder should be prepared for physical delivery, and the long contract holder should be prepared to accept physical funds. Under normal circumstances, most contracts are settled by hedging before expiration, and only a few need physical delivery.
2. The basic characteristics of futures trading:
Futures trading is based on spot trading and is the development of general contract trading. In order to promote the circulation of futures, a special commodity, and ensure the smooth and healthy development of futures trading, all transactions are conducted in an organized futures market. Therefore, futures trading has the following basic characteristics.
(1) contract standardization-futures trading is characterized by standardization and simplification. Futures trading is conducted by buying and selling futures contracts, which are standardized contracts. This standardization means that the grade, quantity and quality of commodities traded in futures are pre-specified, and only the price changes. This is an important feature that distinguishes futures trading from spot forward trading. The standardization of futures contracts greatly simplifies the transaction procedures, reduces the transaction costs, and minimizes the disputes and disputes arising from different understandings of contract terms between the two parties.
(2) Fixed place-futures trading has the characteristics of organization and standardization. Futures trading is conducted in a legally established futures exchange, and OTC trading is generally not allowed, so futures trading is highly organized. A futures exchange is a place where buyers and sellers get together for futures trading. It is a non-profit organization, which aims to provide places and trading facilities for futures trading, formulate trading rules and act as the organizer of trading. It does not interfere with futures trading activities or the formation of futures prices.
(3) Unified settlement-futures trading is characterized by the same payment direction. Futures trading is specifically settled by the clearing house. All transactions reached in the exchange must be sent to the clearing house for settlement, and only after settlement can they be finally reached and become legal transactions. The two parties to the transaction have nothing to do with each other. They only take the clearing house as the counterparty and are only responsible for the clearing house financially, that is, in the direction of payment, they are only responsible for the clearing house, not the mutual exchanges between the two parties. This consistency of payment direction greatly simplifies the trading procedure and the physical delivery procedure, and also creates the possibility for traders to evade the due delivery obligation by "hedging" before the futures contract expires. The first real clearing house in the world appeared in Minneapolis Grain Exchange 189 1, and a strict clearing system was established.
(4) Fixed delivery-physical delivery only accounts for a certain proportion, most of which is hedging. The "hedging" mechanism of futures trading exempts traders from the responsibility of physical delivery. The operating experience of foreign mature futures markets shows that because the cost of physical delivery in futures markets is often higher than that of direct spot trading, most traders, including hedgers, hedge their positions, and only a small part of them finally make physical delivery. Futures delivery must be carried out in the designated delivery warehouse.
(5) Brokerage of trading-futures trading is characterized by centralization and high efficiency. This centralization means that futures trading is not directly conducted by buyers and sellers who actually need to buy and sell futures contracts on the exchange, but by floor brokers, that is, representatives who leave the market on behalf of all buyers and sellers on the futures exchange. Traders trade by giving orders, and all trading orders are finally executed by the on-site representative. The transaction is simple, it is very easy to find the transaction object, and the transaction efficiency is high, showing the characteristics of high efficiency. Concentration is also manifested in the fact that off-site private transactions are generally not allowed.
(6) institutionalized margin-futures trading is characterized by high credit, which is concentrated in the margin system of futures trading. Futures trading needs to pay a certain margin. Before entering the futures market to start trading, traders must pay a certain performance bond in accordance with the relevant regulations of the exchange, and maintain the minimum level of deposit during the trading process in order to provide guarantee for the futures contracts they buy and sell. The implementation of the margin system not only makes the futures trading have the leverage principle of "small and broad" and absorbs the participation of many traders, but also enables the clearing house to provide performance guarantee for the transactions reached and settled by the exchange to ensure that traders can perform their duties.
(7) Commodity specialization-futures trading is selective for futures commodities, and futures commodities are special. Many commodities suitable for spot trading are not necessarily suitable for futures trading. This is the selective feature of futures trading to futures commodities. Generally speaking, whether commodities can be traded in futures depends on four conditions: first, whether there is price risk in commodities, that is, whether prices fluctuate frequently; Second, whether the owners and demanders of commodities are eager for hedging protection; Third, whether the goods can withstand storage and transportation; Fourth, whether the grades, specifications and quality of commodities are easy to distinguish. Different levels need to be upgraded. These are the four most basic conditions, and only commodities that meet these conditions can be traded as futures commodities. At present, Zhengzhou Commodity Exchange has the following four varieties listed: wheat, cotton, sugar and PTA. At present, the varieties listed on Dalian Commodity Exchange are corn, soybean, soybean meal and soybean oil. At present, the listed varieties of Shanghai Futures Exchange are: copper, aluminum, natural rubber and fuel oil.
3. Basic operating procedures of futures trading
The completion of futures trading is carried out through the organic connection of futures exchanges, clearing houses, brokerage companies and traders. First, the customer chooses a futures brokerage company and goes through the account opening formalities in this brokerage company. When the agency relationship between the customer and the brokerage company is formally established, they can issue trading instructions to the brokerage company according to their own requirements. The brokerage company receives the customer's instructions and sends them to the exchange. At present, computer automatic matching is widely used in China. The settlement institution shall notify the brokerage company in writing after daily settlement. Brokerage companies also provide customers with settlement lists. If the customer asks to close the position, the broker will send the return after closing the position to the customer. If customers don't close their positions, they will implement a daily mark-to-market system. When the book profit is settled at the settlement price of the day, the brokerage firm will pay the profit difference to the customer. If there is a book loss, the customer must make up the difference. The actual profit and loss can only be settled after the customer closes the position.
4. Specific trading time:
Monday to Friday (except statutory holidays)
Morning:
Section 1 9:00- 10: 15
Section 210: 30-11:30
Afternoon:
Section 1 Part 1:30-2: 10
Section 2: 20-3 o'clock