Generally speaking, if you want to buy something, it will take three months to buy it, but you don't know what the price will be like after three months, so you should first find someone who will sell it to you after three months, sign a contract first, you should pay a part of the deposit first, and then buy it at the contract price after three months, thus avoiding the risk of price change within three months. The so-called futures refer to commodities that have not yet expired. This commodity may have been produced but not yet applied, or not yet produced, but it will be produced in the expected time.

2.

Futures are standardized contracts. The so-called "contract" is a contract, and "standardization" is unity. Futures trading is actually the buying and selling of this unified contract.

You may have heard of "existing houses" and "faster houses". Existing homes are paid in one hand and delivered in the other; It will take some time for the auction house to settle down.

Futures is usually a forward "commodity" contract. Closing such a contract is actually a promise to buy or sell a certain number of "goods" one day in the future. Of course, such "commodities" can be physical commodities such as soybeans and copper, as well as financial products such as stock indexes and foreign exchange. You choose the transaction type and the delivery time is up to you. The contract can be changed hands at any time, and there is no need for "physical" delivery as promised.

Just as investors don't have to hold the stocks they buy in their hands, futures traders don't have to put the contracts in their pockets, just record them on the bills printed by futures companies.

3.

Futures is the expectation of the long-term price of commodities. Due to the unpredictability of the future, the price fluctuates. The purpose of doing this is to gain benefits from fluctuations. In fact, there is no investment or speculation. All this is for the invisible hand: profit.

four

Futures is a contract that must be fulfilled in the future, not a specific commodity. The content of the contract is unified and standardized, but the price of the contract will fluctuate in different sizes due to changes in various market factors.

The "goods" corresponding to this contract are called the subject matter. Generally speaking, the "goods" to be speculated in futures are the subject matter, which is embodied by contract symbols. For example, CU0602 is a symbol of futures contract, which means a contract delivered in February 2006, and the subject matter is electrolytic copper.