If you have experience in futures investment, or have a certain understanding of futures investment, you will know that futures have short-term contracts and long-term contracts. Many experienced people will tell investors that if they want to conduct futures trading, it is best to choose the main contract. Generally speaking, the main contract is the contract that most traders trade, and it is also a relatively recent contract. However, some successful traders will warn future generations that the trading of forward contracts can bring more profits.

How to choose the near-term contract and the long-term contract? Let's first look at the advantages and disadvantages of trading recent contracts and trading forward contracts.

Advantages of recent contracts

When we trade recent contracts, most of them are main contracts. The word "main contract" also means that most traders will open positions on this contract. Therefore, the advantages of recent contracts are large turnover and good liquidity. Generally speaking, there will be no daily limit at the opening. Whether investors want to stop loss after a loss or take profit after making money, they can quickly close their positions, and it is rare that they can't close a deal because of pending orders.

Shortcomings of the recent contract

If you want to hold it for a long time, you need to send it from time to time.

Advantages of forward contracts

Long-term holding, no frequent monthly delivery. In this way, it is not easy to lose the difference and handling fee.

Shortcomings of forward contracts

The trading volume is small, and there may be opening restrictions or down limits. If the price trend is not conducive to the position at hand, it will be more difficult for investors to close their positions because of the small handicap and poor liquidity.

After analyzing the advantages and disadvantages of the two contracts, we can probably know whether to trade near-term or forward contracts. Generally speaking, if the investor's trading style is high-frequency speculation, intraday band and short-term in a few days, then the recent contract will be a better choice; If investors like to make long-term investments, then forward contracts will be more suitable for you.