1. What is futures? The so-called futures generally refers to futures contracts, which are standardized contracts made by futures exchanges and agreed to deliver a certain number of subject matter at a specific time and place in the future. This subject matter, also known as the underlying asset, can be a commodity, such as copper or crude oil, a financial instrument, such as foreign exchange and bonds, or a financial indicator, such as three-month interbank offered rate or stock index. If the buyer of a futures contract holds the contract until the expiration date, he is obliged to purchase the subject matter corresponding to the futures contract; If the seller of a futures contract holds the contract until it expires, he is obliged to sell the subject matter corresponding to the futures contract (some futures contracts do not make physical delivery when they expire, but settle the difference, for example, the expiration of stock index futures refers to the final settlement of the futures contract in the opponent according to a certain average value of the spot index). Of course, traders of futures contracts can also choose to reverse the transaction before the contract expires to offset this obligation. The broad concept of futures also includes option contracts traded on exchanges. Most futures exchanges list both futures and options. 2. What kinds of futures are there? What is stock index futures? What is interest rate futures? What is foreign exchange futures? Futures can be roughly divided into two categories, commodity futures and financial futures. The main varieties of commodity futures can be divided into three categories: agricultural futures, metal futures (including base metals and precious metals futures) and energy futures; The main varieties of financial futures can be divided into foreign exchange futures, interest rate futures (including medium and long-term bond futures and short-term interest rate futures) and stock index futures. The so-called stock index futures are futures with the stock index as the subject matter. After a certain period of time, the two parties trade the price level of the stock index and make delivery by cash settlement of the price difference. The so-called interest rate futures refer to futures contracts with bond securities as the subject matter, which can avoid the risk of securities price changes caused by bank interest rate fluctuations. There are many kinds of interest rate futures, and there are also many classification methods. Generally, according to the contract term, interest rate futures can be divided into short-term interest rate futures and long-term interest rate futures. The so-called foreign exchange futures refer to futures contracts with exchange rate as the subject matter, which are used to avoid exchange rate risks. It is the earliest variety in financial futures. At present, the main varieties of forex futures trading are: US dollar, British pound, German mark, Japanese yen, Swiss franc, Canadian dollar, Australian dollar, French franc and Dutch guilder. Globally, the main market for foreign exchange futures is the United States. Futures commodity futures agricultural products futures metal futures (basic metal futures, precious metal futures) energy futures financial futures foreign exchange futures interest rate futures (medium and long-term bond futures, short-term interest rate futures) 3. What's the difference between stock index futures and stocks? Compared with stocks, stock index futures have several distinct characteristics, which are particularly important for stock investors: (1). Futures contracts have an expiration date and cannot be held indefinitely. Stocks can be held all the time after buying, and the number of stocks will not decrease under normal circumstances. However, stock index futures have a fixed expiration date and will be delisted when it expires. Therefore, trading stock index futures cannot be equated with buying and selling stocks. After trading, we must pay attention to the expiration date of the contract to decide whether to close the position in advance or wait for the expiration of the contract (fortunately, the stock index futures are settled in cash and do not need to actually deliver the stock), or to transfer the position to next month. (2) Futures contracts are margin transactions, and stock index futures contracts must be settled daily. Generally, a contract can be bought and sold only by paying about 10- 15% of the contract face value. On the one hand, it improves the profit space, on the other hand, it also brings risks, so it is necessary to settle the profit and loss every day. After buying a stock, the book profit and loss are not settled before selling. However, stock index futures are different. After the transaction, the contract held in hand should be settled at the settlement price every day, and the book profit can be withdrawn, but the book loss (that is, additional margin) must be made up before the opening of the next day. And because it is a margin transaction, the loss may even exceed your investment principal, which is different from stock trading. (3) Futures contracts can be sold short. Stock index futures contracts can be easily sold short and then bought back after the price falls. It is ok to short stocks, but it is relatively difficult. Of course, once the price rises instead of falling after short selling, investors will face losses. (4) High market liquidity. Research shows that the liquidity of stock index futures market is obviously higher than that of stock spot market. For example, 199 1, the trading volume of FTSE-100 index futures has reached 85 billion pounds. (5) Stock index futures are delivered in cash. Although the futures market is a derivative market based on the stock market, it is delivered in cash, that is, only the profit and loss are calculated at the time of delivery, and the physical object is not transferred. During the delivery period of futures contracts, investors do not have to buy or sell the corresponding stocks to fulfill their contractual obligations, thus avoiding the phenomenon of "crowding" in the stock market during the delivery period. (6) Generally speaking, the stock index futures market focuses on buying and selling according to macroeconomic data, while the spot market focuses on buying and selling according to the situation of a single company. 4. What are the uses of stock index futures? One of the main uses of stock index futures is to manage the risk of stock portfolio. The risk of stock can be divided into two categories. One is the unsystematic risk related to individual stock management, which can be dispersed by diversifying the portfolio. The other is the systemic risk related to macro factors, which cannot be eliminated by diversification, and is usually expressed by beta coefficient. For example, the beta value is equal to 1, indicating that the fluctuation of the stock or stock portfolio is the same as that of the broader market. For example, the beta value is equal to 1.2, indicating that the fluctuation of stocks or stock combinations is 20% greater than that of the broader market. For example, the beta value is equal to 0.8, indicating that the fluctuation of stocks or portfolios is 20% smaller than that of the broader market. By buying and selling stock index futures and adjusting the beta coefficient of stock portfolio, the systemic risk of portfolio can be reduced or even eliminated. Another main use is that stock index futures can be used for arbitrage. The so-called arbitrage is to use the pricing deviation of stock index futures to buy the index components of stock index futures and sell them at the same time, or to short the index components of stock index futures and buy stock index futures at the same time, so as to obtain risk-free returns. Arbitrage mechanism can ensure that the price of stock index futures is within a reasonable range. Once deviated, arbitrageurs will enter the market to obtain risk-free income, thus pulling the price between them back to a reasonable range. In addition, stock index futures can also be used as a leveraged investment tool. Because of the margin trading of stock index futures, as long as the direction is correct, it is possible to obtain high returns. For example, margin 10%, buy 1 CSI 300 index futures, as long as the stock index futures rise by 5%, you will earn 50%. Of course, if you judge the wrong direction and the futures index falls by 5% instead of rising, then investors will lose 50% of their principal. 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. Futures trading follows the principle of "openness, fairness and justice". Buying futures is called "short selling" or "long trading", that is, long trading. Selling futures is called "short selling" or "short selling", which means short selling. The trading behavior of starting to buy futures contracts or selling futures contracts is called "opening positions", the behavior of traders holding contracts is called "holding positions", and the reverse trading behavior of traders knowing that they have contracts is called "closing positions" or "hedging". If the contract in the hands of the trader is not hedged according to the delivery month, the short contract holder should prepare for physical delivery, and the long contract holder should prepare funds to accept physical delivery. Under normal circumstances, most contracts are settled by hedging before expiration, and only a few need physical delivery. Futures trading and spot trading have something in common: they are both a trading method, both real transactions, and both involve the transfer of commodity ownership. The difference between futures trading and spot trading: 1 The direct target of buying and selling is different. The direct object of buying and selling in spot trading is the commodity itself, including samples, objects and pricing. The direct object of futures trading is futures contracts, not how many contracts to buy or sell. 2. The purpose of the transaction is different. Spot transaction is the transaction of primary currency and primary commodities, and it is a direct means to meet the needs of buyers and sellers by obtaining or transferring the ownership of commodities immediately or within a certain period of time. Generally speaking, the purpose of futures trading is not to obtain physical objects at maturity. The purpose of hedgers is to transfer the price risk in the spot market through futures trading, and the purpose of investors is to obtain risk profits from price fluctuations in the futures market. 3. Spot transactions with different trading methods are generally one-on-one negotiation and contract signing. The specific content shall be agreed by both parties. If the contract cannot be fulfilled after signing, it will be resorted to law. Futures trading is conducted in an open and fair manner. One-on-one negotiation (or private hedging) is considered illegal. 4. Spot trading in different trading places is generally not limited by trading time, place and object. Trading is flexible, convenient and casual, and you can trade with your opponent anywhere. Futures trading must be conducted in an open and centralized manner in the exchange according to law, and cannot be traded over the counter. 5. The range of commodities is different. The varieties of spot trading are all commodities in circulation, while the varieties of futures trading are limited. Mainly agricultural products, petroleum, metal commodities and some primary raw materials and financial products. 6. Different settlement methods Spot transactions are all cash on delivery, and no matter how long it takes, it is one or more settlements. Futures trading adopts a daily debt-free settlement system, and profits and losses must be settled daily. The settlement price is calculated according to the weighted average of transaction prices. The characteristics of commodity futures trading are as follows: 1. Small but wide: 100% of the virtual funds can be controlled only by paying 2-20% of the performance bond. Second, the convenience of transaction: because the main factors in futures contracts, such as commodity quality and delivery place, have been standardized, the contracts have strong interchangeability and liquidity. Third, the information is open and the transaction efficiency is high: futures trading enables traders to compete fairly under equal conditions through open bidding. At the same time, futures trading has a fixed place, procedures and rules, and it operates efficiently. Fourth, futures trading can be operated in two directions, which is simple and flexible: futures contracts can be bought or sold after paying the deposit, and transactions can be reached within a few seconds or minutes with only a few instructions. When the market is at a favorable price, close the position or cover the position in the opposite direction. 5. The performance of the contract is guaranteed: after the futures transaction is completed, it must be confirmed by the settlement department, and there is no need to worry about the performance of the transaction.