The futures exchange period is to close the original contract near the delivery month and make a new contract in the most active month. Generally speaking, changing months is to keep the same number of contracts and the same trading direction.

The method of changing warehouses is very important. When the expiring contract is closed, the new contract is opened in the same direction. The main risk of extension is the price difference between the old and new contracts during one or more extensions. If investors extend the old contract on the delivery date and extend it before the delivery date when the spread risk is completely exposed, it may avoid the spread risk. The most important thing is how to grasp the changing characteristics of the price gap. The more stable the spread, the smaller the influence of time extension on the efficiency of hedging insurance, and the larger the spread. In addition, when the hedge fund is large, the impact cost can be reduced to some extent by delaying in advance or in batches.

Key points of futures warehouse exchange:

Individual users can't deliver the spot. Before the delivery month, the general futures company will ask you to close your position. The settlement of the winning and losing account cannot be converted into spot. Therefore, individuals cannot avoid the risk of overdue liquidation. Company users can deliver cash. Futures was originally a reasonable hedging tool for both the supply and demand sides of raw materials.