I'll tell you the most popular answer: Qingqing Zijiao Grade II 2009- 12-3 1. Futures is an agreement between buyers and sellers to fulfill the demand and supply commitments of a commodity at a certain time in the future (usually based on the month in the market). Separately, futures is a contract, which you can understand as an agreement signed on a piece of paper (but now it's all electronic transactions, and the contracts are all in the computer server, I think). With this agreement, there must be a deposit to prevent suppliers or buyers from defaulting in the future. The margin is collected by the futures exchange as an intermediary through the futures brokerage company. If the supply and demand sides really trade for business needs, then the contract will be executed at a specified time in the future, that is, the supplier will deliver the goods to the buyer in the designated warehouse, and the buyer will pay the remaining funds except the down payment and take the goods away. This process is called delivery. However, in the market, most people do not trade for this purpose, but to speculate and earn the difference. In the meantime, because I don't want to pay or get the goods stipulated in the contract (also known as the target). Then, the first time it enters the market to buy or sell a contract, it is to be washed away by selling or buying. This is called liquidation. Liquidation must be completed one trading day before the delivery month stipulated in the contract, otherwise delivery must be due. If delivery is not completed, the deposit is invalid. It must be pointed out that investors (more precisely, speculators) are allowed to sell goods without a contract, and they can also buy goods without receiving physical objects, so what they sell is empty. Friends who are new to the concept of futures always ask themselves, how can they sell without that thing? Yes, this is allowed in the futures market. The purpose of this speculative mechanism is to improve the activity of the futures market and provide a good market platform for the real function of the futures market to avoid risks. Learn more about the function of futures, and you will understand. Finally, I want to say that futures trading is not about commodities, but a written agreement of these commodities-a peace treaty. Chen Xijun's words: Thank you for your help!