Commodity contract: a standardized contract made by a futures exchange to deliver a certain quantity and quality of goods at a certain time and low point in the future.

Futures trading: refers to the trading activities of buying and selling futures contracts on futures exchanges.

Margin: refers to the funds paid by futures traders in accordance with the prescribed standards for settlement and performance guarantee.

Settlement: refers to the settlement of the trading gains and losses of both parties according to the settlement price announced by the futures exchange.

Delivery: refers to the process that when a futures contract expires, according to the rules and procedures of the futures exchange, both parties to the transaction end the expired open contract by transferring the ownership of the goods contained in the futures contract.

Open position: the trading behavior of starting to buy or sell futures contracts is called "opening positions" or "establishing trading positions".

Liquidation: refers to the behavior of futures traders to buy or sell futures contracts with the same variety, quantity and delivery month but with opposite trading directions, and to liquidate futures transactions.

Open position: refers to the number of open positions held by futures traders.

Position limit: refers to the maximum position set by the futures exchange for futures traders.

Warehouse receipt: refers to the standardized delivery certificate issued by the delivery warehouse and recognized by the futures exchange.

Matchmaking: refers to the computer trading system of the futures exchange matching the trading orders of both parties.

Price limit: refers to that the trading price of futures contracts in a trading day shall not be higher than or lower than the prescribed price limit, and the quotation exceeding this price limit will be regarded as invalid and cannot be traded.

Compulsory liquidation system: refers to the system in which futures brokerage companies carry out compulsory liquidation to prevent further expansion of risks when customers' trading margin is insufficient and their positions exceed the prescribed position limit, and are punished for violating the rules, and should be forced to liquidate according to the emergency measures of the exchange, as well as other situations that should be forced to liquidate.

Position: market agreement. The buyer of the futures contract is in a long position, and the seller of the futures contract is in a short position.

Basis: the difference between the spot market price and the futures market price of the same commodity at that time. Unless otherwise specified, the basis is generally calculated in the latest futures contract month.

Pledge: refers to the behavior that a member applies and, with the approval of the exchange, gives the certificate of rights held by the exchange to the exchange for possession as a guarantee for its performance of the trading margin debt. The pledge of the certificate of rights is limited to the trading deposit, but the losses, expenses, taxes and other funds must be settled in monetary funds.

Forced liquidation: members or customers of a futures exchange use their financial advantages to control futures trading positions or monopolize spot commodities that can be delivered, over-hold positions and deliver them, force the other party to default or close positions at unfavorable prices, and deliberately raise or lower futures market prices to reap huge profits. According to the different operation methods, it can be divided into two ways: "more forced air" and "more forced air".

Premium: 1) Additional fees allowed by the exchange for commodities above the delivery standard of futures contracts. 2) refers to the price relationship between different delivery months of a commodity. When the price of one month is higher than that of another month, we call the month with higher price as the premium of the month with lower price. 3) When the transaction price of a security is higher than the face value of the security, it is also called premium or premium.

Arbitrage: a trading technique that speculators or hedgers can use, that is, buying spot or futures traders in one market and selling the same or similar goods in another market in the hope of making a difference between the two transactions, thus making a profit.

Option: Also known as option, option trading is actually a kind of right trading. This right means that investors can buy or sell a certain number of certain "commodities" from the seller of options at a predetermined price (called the agreed price) at any time within a certain period of time, no matter how the price of the "commodities" changes during this period. Option contracts stipulated the time limit, agreed price, transaction quantity and type, etc. Within the validity period, the buyer can freely choose to exercise the resale right; If you think it is unfavorable, you can give up this right; If the contract expires, the buyer's option will automatically become invalid. Options are divided into call options and put options.

Too many short positions: market manipulators use the advantages of funds or physical objects to sell a large number of futures contracts in the futures market, which greatly exceeds the ability of many parties to undertake physical objects. As a result, the futures market price has fallen sharply, forcing speculative bulls to sell contracts at low prices and admit losses, or be fined for breach of contract because of their financial strength, thus making huge profits.

Short positions: In some small varieties of futures trading, when market manipulators expect that the spot commodities available for delivery are insufficient, they will build enough long positions in the futures market by virtue of their financial advantages to raise the futures price, and at the same time buy and hoard a large number of physical objects available for delivery, so the prices in the spot market will rise at the same time. In this way, when the contract is close to delivery, the chasing members and customers will either buy back the futures contract at a high price and claim for liquidation; Either buy the spot at a high price for physical delivery, or even be fined for breach of contract for not handing over the physical goods, so that long positions can make huge profits from it.

Trading volume: the number of commodity futures contracts bought or sold in a certain period of time. Volume usually refers to the number of contracts traded on each trading day.

Short position: the total amount of commodity futures or options contracts, which is neither offset by the opposite futures or options contracts, nor delivered or fulfilled in kind.

Settlement price: weighted transaction price.

Market order: a form of trading order. That is, an order to buy (sell) a futures contract in a specific delivery month immediately (as soon as possible) according to the best price in the market at that time.

Limit order: an order in which the customer decides the price limit or execution time.

Stop-loss order: an order to buy or sell when the market price reaches a certain level. When the transaction price of a commodity or securities reaches or exceeds the stop-loss price, the buying stop-loss order becomes a market order, and when the transaction price falls or falls below the stop-loss price, the selling stop-loss order becomes a market order.

Latest month: the month when the futures contract is closest to the delivery date, also known as the spot month.

Forward month: a contract month with a longer delivery period compared with the latest (delivery) month.

Hedging profit: buying and selling two related commodities at the same time, hoping to make a profit when hedging trading positions in the future. For example, buying and selling futures contracts of the same commodity in different delivery months; Buying and selling futures contracts of the same delivery month, the same commodity but different exchanges; Buy and sell futures contracts with the same delivery month but different commodities (but the two commodities are interrelated).

Cash delivery: refers to the delivery method in which the profit and loss of the open contract are calculated at the settlement price when the futures contract is closed at the end of the period and the futures contract is finally closed by cash payment.

Physical delivery: refers to the behavior of the buyers and sellers of futures contracts to close the positions of the expired open contracts by transferring the ownership of the subject matter of futures contracts in accordance with the rules and procedures formulated by the exchange. Commodity futures trading generally adopts the way of physical delivery.

Basic analysis: an analytical method of forecasting future market price changes by using supply and demand information.

Technical analysis: a price analysis method that uses historical prices, trading volume, short positions and other trading data to predict future price trends.

Short hedging: selling futures contracts to prevent losses caused by falling prices when selling spot in the future. When selling spot goods, the previously sold futures contract will be hedged by buying another futures contract with the same quantity, category and delivery month, and the hedging will be ended. Also selling hedging.

Multi-position hedging: Multi-position hedging refers to a futures trading method in which traders buy futures in the futures market first, so as to avoid economic losses caused by rising prices in the spot market in the future.

Stock index futures: financial futures contracts with stock price index as the subject matter.

Maintain margin: customers must maintain the minimum margin amount in their margin account.

Performance bond: the bond deposited by the buyer and seller of a futures contract or the option seller in the trading account to ensure the performance of the contract. Commodity futures deposit is not a stock payment, nor a deposit for trading commodities, but a good reputation deposit.

Settlement margin: a financial guarantee that a settlement member (usually a company or enterprise) will fulfill its customers' futures and options contracts. Settlement bond is different from customer performance bond. The customer's performance bond is deposited in the brokerage office, while the settlement bond is deposited in the clearing house.

Initial margin: when placing an order for trading futures contracts, traders in the futures market must deposit a margin in accordance with the regulations.