Appropriate storage: An economic function of the futures market is to allocate inventory in the spot market. Holders with large inventories can have two choices-as long as the goods do not rot or decrease during the holding period, they can either sell the inventory now or hold the inventory for later sale.

Homogeneity: the obvious feature of futures contracts different from forward contracts is that the subject matter of transactions must be standardized commodities. If this homogeneity condition cannot be met, the exchange will not be able to settle accounts for different market participants.

Price fluctuation: Price fluctuation plays an important role in attracting two basic participants, namely hedgers and speculators, to enter the futures market. Adequate spot size: There are three reasons why there should be sufficient spot supply and demand for futures commodities: First, adequate commodity supply helps to avoid price monopoly. Second, a large number of market participants help to provide a large number of potential hedgers for futures trading. Third, an adequate spot market helps to provide a continuous and orderly supply and demand force, which is conducive to the realization of delivery and spot arbitrage.

Unlimited supply: Unlimited supply of goods has two meanings: first, there is no government control or monopoly in the market; The second is that the distribution cost is lower.

Over-the-counter transaction: The forward contract faces the risk of counterparty default because there is no exchange as the guarantor of performance. The forward contract is only a bilateral agreement, so it is difficult to close before the settlement date, and market participants in the futures market can hedge their positions at any time before the delivery date.