Futures trading means that the buyer and the seller agree to deliver a specified amount of spot at a specified time, price and other trading conditions by signing a contract. Usually, futures are concentrated in futures exchanges and traded through standardized contracts, but some futures contracts can be traded through OTC, which is called OTC contracts.

The assets traded are usually commodities or financial instruments. The predetermined price at which buyers and sellers agree to buy and sell assets is called forward price. The specified time in the future (that is, the time when delivery and payment occur) is called the delivery date. Because it is a function of the underlying assets, futures contracts are derivatives.

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Futures trading practice

1. Buy first: refers to signing an agreement with others to buy a commodity at a certain price in the future, or accepting this type of agreement from others. After-sale: refers to the transfer of this agreement to others in the middle, or liquidation at maturity.

2. Selling first refers to signing an agreement with others to sell a commodity at a certain price in the future. Or accept this agreement from others. Post-purchase: refers to the transfer of this agreement to others in the middle, or liquidation at maturity.

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