First of all, we know that futures is not a commodity, but a standardized contract made by the exchange to deliver a certain amount of subject matter at a specific time and place in the future.

The characteristics of futures trading are:

① Two-way: One of the biggest differences between futures trading and the stock market is that futures can be traded in two directions, and futures can be long or short. When the price rises, you can buy low and sell high, and when the price falls, you can sell high and buy low.

(2) Margin trading: The leverage principle is the charm of futures investment. Investing several times the original amount with a small amount of money in order to obtain a rate of return that fluctuates several times relative to the investment target, while amplifying the income, the risk is also increasing. Generally, when buying and selling futures contracts, a deposit (5%- 15%) is paid according to a certain proportion of the contract value, which can be used as a performance guarantee for trading several times as much as the deposit.

③T+0 transaction: Futures are T+0 transactions, and futures contracts bought on the same day can be sold on the same day, which means that the risks on the same day can be avoided.

④ Debt-free settlement on the same day. After the daily trading, the settlement department will settle all contract profits and losses, trading margin, handling fees, taxes and other expenses for traders according to the settlement price of the day, and transfer the net accounts receivable and payable at one time, and increase or decrease the margin accordingly. If the margin balance of the trader is lower than the specified standard, additional margin is required, so that there is no debt on that day.