The futures market first sprouted in Europe, and the initial futures trading developed from forward trading. The first modern futures exchange was the Chicago Board of Trade (CBOT), which was established in 1848. At first, there was no leverage. Later, standardized contracts were introduced, allowing contract transactions, improving the margin system, and allowing hedging to be exempted from performance, forming the current form of futures trading.

The main functions of futures are price discovery, risk aversion and asset allocation (not discussed in detail). Participants in the futures market include both spot manufacturers and traders to hedge and avoid price risks; There are also speculators who take advantage of price fluctuations and increase liquidity for the market.

Through the development course, external form and function of futures, futures are essentially a process of voluntary and mutual game between buyers and sellers, and the formation of prices is the result of constant long-short comparison and long-short conversion.

Because futures is a matching trading mechanism, if you want to buy it, someone will sell it, and if you want to sell it, someone will buy it, so that you can make a deal, which is different from the market maker system.

Hope to adopt ~