Futures itself has no shortcomings, but people who do futures have shortcomings. The futures market came into being in response to the demand, providing a place for enterprises to hedge. The shortcomings of futures investment mainly include the following points:

1, a lot of leverage. Therefore, the slight fluctuation of spot market price has a great influence on futures. If the fluctuation of spot market price is unfavorable to futures, additional margin will be required. Forced liquidation without adding. If the spot market price fluctuates unfavorably, a margin must be added. If you don't add it, you will be forced to close your position and lose a lot.

2. Investing in the future spot market or avoiding risks is futures. The uncertainty of future spot market price makes it difficult to grasp futures investment.

3. At present, China's futures development is not perfect (especially financial futures). Therefore, there is a certain risk of institutional defects.

Futures are mainly not commodities, but standardized tradable contracts with cotton, soybeans, oil and other bulk products and financial assets such as stocks and bonds as the targets. Therefore, the subject matter can be commodities (such as gold, crude oil and agricultural products) or financial instruments.

The delivery date of futures can be one week later, one month later, three months later or even one year later.

A contract or agreement to buy or sell futures is called a futures contract.

The place where futures are bought and sold is called the futures market.

Investors can invest or speculate in futures. Most people think that improper speculation in futures, such as short selling without goods, will lead to financial market turmoil, which is not correct. Going long and shorting at the same time is a healthy and normal trading market.