The futures price will be more expensive than the spot price, because it is a forward contract, but the price will tend to be one to one near the delivery month, but it will be a little higher, because the futures price includes some expenses such as storage fees and labor costs. But if the demand expectation is poor, the futures price will be lower than the spot price, such as 20 10, 20 1 1 year.

spot goods

In spot trading, the common way is cash on delivery or barter.

Generally applicable to agricultural and sideline products sales, small wholesale and retail transactions. In China, retail enterprises generally adopt the method of one-handed delivery and one-handed collection, and two-handed delivery; Spot transactions of wholesale enterprises, in addition to cash on delivery, also take the form of bank collection and acceptance for settlement within a time limit.

The difference between spot trading and other trading methods lies in:

(1) For the purpose of trading, it is to obtain the ownership of goods.

(2) In terms of trading methods, it is generally conducted through one-on-one negotiation between the two parties, and there is no need to focus on a specific time and place.

future

Futures, whose English name is futures, is completely different from spot. Spot is actually a tradable commodity. Futures are mainly not commodities, but standardized tradable contracts based on some popular products such as cotton, soybeans and oil and financial assets such as stocks and bonds. Therefore, the subject matter can be commodities (such as gold, crude oil and agricultural products) or financial instruments.

The delivery date of futures can be one week later, one month later, three months later or even one year later.

A contract or agreement to buy or sell futures is called a futures contract. The place where futures are bought and sold is called the futures market. Investors can invest or speculate in futures.

Futures market first appeared in Europe. The original futures trading was developed from spot forward trading. The first modern futures exchange 1848 was established in Chicago, USA, and 1865 established a standard contract model. In 1990s, China Modern Futures Exchange came into being. There are four futures exchanges in China: Shanghai Futures Exchange, Dalian Commodity Exchange, Zhengzhou Commodity Exchange and China Financial Futures Exchange. The price changes of its listed futures products have a far-reaching impact on related industries at home and abroad.