① ~ Understand the basic concepts of futures.

Forward contract refers to the contract reached by both parties at present, which stipulates to trade a certain subject matter at a certain price at a certain time in the future. This kind of transaction is mostly aimed at obtaining the subject matter and will be handed over in kind.

Futures contracts are roughly equivalent to forward contracts officially traded on exchanges. But usually it is not to obtain the subject matter, but to obtain the transaction price difference in the middle, so it usually ends with liquidation.

The so-called liquidation is because what you want is the transaction price difference, not the subject matter. So you just start to "buy" futures contracts, and finally you have to "sell" the same amount of futures contracts. Because there is a price difference between the two contracts, there is no difference in the quantity of the subject matter, so traders do not need physical handover to obtain the price difference.

② ~ Understand how long and short futures are (in fact, they are bullish and bearish)

A futures feature to be used here is that you can "sell" a futures contract (promise to sell it in the future) without anything (except margin). As long as you buy an equivalent contract in the future, you can close your position.

Long: Buy low and sell high.

I guess you're dizzy. Remove the intermediate process, remove the lever and simplify an example.

For example, you think that rice futures will rise in the future 1 year, from the current 100 yuan to 150 yuan. 1 year rice futures only have 130 yuan on the exchange, so you "buy" 1 contract. 1 year later, rice futures rose to 150. You "sell" 150 at the price of 1 contract liquidation, and the two contracts hedge to earn the difference (150- 130)=20 yuan. Of course, if 1 year rice futures rise to 200 yuan, you will earn (200-1 30) if you buy1"sell" contract = 70 yuan. If rice futures fall to 1 00 after1year, you will lose (100-130) =-30 yuan.

Short: sell high and buy low

For example, you decide that rice futures will fall in the future 1 year, from 200 to 150. The 1 year contract is now in 180 yuan, and you "sell" 1 copy. 1 contract declines after one year 150 yuan. You "buy" the contract with 150 yuan and earn the difference (1 80-150) = 30 yuan.

③ ~ The above are hedging at the futures level.

Long orders are different from short orders, mostly because of different prices and different quantities. The game between countries is not a level problem, but a game between expectation and reality. People, fund companies and financial institutions can all become participants.

Please use pure hand clap. If there are any mistakes, please point them out.