The concept of "ship washing" in futures is breach of contract. Simply put, the breach of contract of "ship washing" includes the loss of advance payment or deposit and non-performance of the contract, as well as the phenomenon that the cargo ship has been loaded at the place of origin and transported to the dock, but it has not been transported to China, but sold on the way back.

Example:

Since April 2004, the international soybean price has fallen rapidly, with a drop of nearly 50%. Domestic soybean processing has changed from the original profit to the loss of the whole industry. ? Faced with such price difference, some domestic processing enterprises, especially private enterprises, have no choice but to breach the contract and give up the original purchase contract and deposit signed at a high price. The so-called "ship washing" incident.

Extended data

Futures terminology:

1. Commodity contract: a standardized contract made by a futures exchange, which stipulates that a certain quantity and quality of commodities will be delivered at a specific time and low point in the future.

2. Futures trading: refers to the trading activities of buying and selling a futures contract on a futures exchange.

3. Margin: refers to the funds paid by futures traders in accordance with the prescribed standards for settlement and performance guarantee.

4. Settlement: refers to the fund settlement of the trading gains and losses of both parties according to the settlement price announced by the futures exchange.

5. Delivery: refers to the process that when a futures contract expires, both parties to the transaction end the expired open contract by transferring the ownership of the goods contained in the futures contract in accordance with the rules and procedures of the futures exchange.

6. Opening positions: The trading behavior of starting to buy or sell futures contracts is called "opening positions" or "establishing trading positions".

7. Closing positions: refers to the behavior of futures traders to buy or sell futures contracts with the same variety, quantity and delivery month, but in the opposite direction, and close their positions.