1 Liquidity of the contract
According to the different contract liquidity, futures contracts can be divided into active contracts and inactive contracts. Usually, futures speculators should choose active contracts when choosing contract months, and will avoid inactive contracts. Active ones will have high market liquidity, so speculators can close their positions at the right price. Choosing inactive ones will make it difficult for speculators to close their positions at an ideal price, usually waiting for a long time or even accepting an unsatisfactory price difference. So in order to avoid this situation, we will distinguish between forward market and reverse market when operating.
2 Forward market and reverse market operation
① Active market
In the forward market, the price of the far-month contract is higher than that of the near-month contract. Long speculators should buy near-month contracts and sell far-month contracts at the same time.
② Reverse market
In the reverse market, because the price of the far-month contract is lower than that of the near-month contract. As a long-term speculator, he bought far-month contracts and sold near-month contracts; Speculators who have shorted contracts in recent months. However, in the case of market reversal caused by extremely tight spot supply, there will be a situation that the price of the contract in recent months is higher than that of the contract in far months, so speculators should pay more attention to avoiding the risk of default when entering the delivery period.
Well, the above are two issues that speculators sorted out by Bian Xiao need to pay attention to when entering the market, that is, when choosing the delivery month of the contract, they must choose the initiative. In addition, they should forecast the market carefully to avoid unnecessary risks.