Converting futures into cash, referred to as futures cashing. Spot-for-futures refers to the transaction that future positions is converted into a spot position after the long and short parties holding the same delivery month contract reach a spot trading agreement. The way of cash conversion is: both parties who have reached an agreement apply to the Exchange at the same time. After approval by the Exchange, the Exchange will close the position on their behalf at the closing price agreed by both parties (the spot buyer must hold long positions in the futures market, and the spot seller must hold short positions in the futures market). At the same time, according to the spot trading agreement reached, both parties conduct spot trading of the same type and quantity as the subject matter of the futures contract.

Futures and spot are inseparable, and the most direct relationship is connected by futures delivery. Futures will turn into spot after maturity, and now the previous transaction is futures trading. The maturity price of futures is generally equal to or equal to the spot price. The futures market is as full of changes and uncertainties as the spot market, but it is not exactly the same.

In the relationship between spot and futures, gold is the most easily misunderstood financial product. It is often said in the media that London is the largest gold market in the world; The analysis of the price of gold must be called London gold. In fact, London is not the birthplace of gold prices. The decisive force of gold price is the gold futures of the New York Mercantile Exchange and CBOT.

For a specific financial product, whether the spot market or the futures market dominates the price fluctuation needs case analysis, but generally speaking, the futures market dominates the price fluctuation. Moreover, traditional spot trading varieties (such as foreign exchange) are increasingly influenced by their futures markets.

Foreign cash transfer transactions:

Futures trading is owned by Chicago Board of Trade (CBOT), Chicago Mercantile Exchange (CME), Minneapolis Grain Exchange (MGEX), the New York Mercantile Exchange (NYBOT) and the New York Mercantile Exchange (NYMEX). Long-term trading methods such as LIFFE and IPE. In foreign countries, futures conversion is not only used in commodity futures trading, but also widely used in financial instruments trading. Almost all kinds of futures and options on the Chicago Mercantile Exchange (CME) can be converted into futures.

Different from the "trading spot in the trading hall", "futures cashing" is to close the position at the price agreed by the buyer and the seller (the agreed price stipulated by Zheng Shang is within the price limit on the approval date). Cash on delivery is different from delivery. Buyers and sellers can pay cash on delivery in advance or deliver the goods in the delivery month. The time, place and grade of delivery shall be agreed by both parties. Let's compare the buying and selling prices of "cash conversion" with "due delivery" and "buying and selling spot after closing the position in the trading hall" to discuss the rationality of cash conversion.