Coal futures is a kind of coal derivative with trading properties. Its trading is usually carried out through futures contracts, and the holder can buy or sell coal at the agreed price on the set expiration date. The trading mode of coal futures can effectively reduce the uncertainty of coal price in a certain period of time and provide effective hedging means for buyers or manufacturers.

There are two main types of coal futures traders, one is coal production enterprises, and the other is enterprises mainly engaged in coal trade. The former plays a more hedging role, mainly through futures trading to reduce the impact of coal price instability on enterprises. The latter is the best choice to gain profits and improve corporate profits through futures trading.

The trading scale of the coal futures market is expanding day by day, and the increase in trading volume also means that the financial derivatives in the coal market are more abundant. However, before participating in the coal futures market, investors need to understand the development trend of the coal market, the relationship between supply and demand, abide by market rules, and raise their risk awareness, so as to accurately judge the market trend, formulate reasonable trading plans and correct risk control measures.