In most cases, when many forces in the futures market are strong, it will push futures up. When the empty side of the futures market is strong, it will lead to the decline of the futures trend. Moreover, when there is an oversupply in the market, it will lead to a decline in prices. When demand exceeds supply, the price of products will rise.
At the same time, in the futures market, the price increase of a certain product will drive the related products to rise. When the price of a product falls, it will lead to the decline of related products.
What are the factors that affect the rise and fall of futures?
1, supply and demand. Futures trading is the product of market economy, so its price changes are affected by the relationship between market supply and demand. When supply exceeds demand, futures prices fall; On the contrary, futures prices will rise.
2. Economic cycle. In the futures market, price changes are also affected by the economic cycle, and price fluctuations will occur at all stages of the economic cycle.
3. Government policies. Some policies and measures formulated by governments of various countries will have different degrees of influence on the futures market price.
4. Political factors. The futures market is very sensitive to the change of political climate, and the occurrence of various political events will often have different degrees of impact on prices.
5. Social factors. Social factors refer to the public's ideas, social psychological trends and the information influence of the media.
6. Seasonal factors. Many futures commodities, especially agricultural products, have obvious seasonality, and their prices fluctuate with the changes of seasons.
7. Psychological factors. The so-called psychological factor is the degree of confidence of traders in the market. If you are optimistic about a commodity, even if there are no favorable factors, the price of the commodity will rise; When you are bearish, there is no bad news and the price will fall. For another example, some large speculative commodities often use people's psychological factors to spread some news and artificially sell or supplement speculative commodities in large quantities to seek speculative profits.
8. Financial and monetary factors. In the process of world economic development, inflation, currency exchange rate and interest rate fluctuations in various countries have become common phenomena in economic life, which have brought increasingly obvious influence on the futures market.