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What are the working principles of forward, futures and options?
Forward refers to the contract signed by both parties to the transaction, stipulating when, where and at what price to exchange a commodity. Futures is a standardized contract traded on the exchange, which stipulates the delivery date and delivery standard. Compared with forward, options can be traded on the exchange at any time. Options, developed on the basis of futures, are tools for managing futures risks and can be traded on exchanges.