In short, spot price trading is a trading mode of futures price (the object of spot price is constantly changing)+premium (fixed). Among them, premium refers to the difference between spot transaction price and futures price. If the spot price is higher than the futures price, it is called spot premium or futures premium, and vice versa. According to the different ownership of pricing power, pricing transactions are divided into buyer pricing transactions and seller pricing transactions. If the decision of trading time belongs to the buyer, it is called buyer's pricing transaction. On the contrary, it is a seller's price transaction. Due to the sharp price fluctuation in the futures market, it is necessary to adopt the method of point price trading to make the price more flexible, so as to better hedge the market risks, lock in the product profits, improve the core competitiveness of enterprises and maximize the market.
First, the advantages of price trading
Spot price model is actually an extension of enterprise futures hedging business. Manufacturers and traders can determine the final settlement price according to the futures price with the highest degree of marketization, and effectively bypass delivery in futures trading, thus effectively saving delivery costs. For production enterprises, on the one hand, the point price model effectively stabilizes the sales price and locks in the operating profit; On the other hand, although the enterprise transfers the pricing power to the market, it can still determine the premium and discount according to the spot market and its own situation to ensure its own interests.
For traders, on the one hand, the pricing model can change the situation of passively accepting quotations from coal enterprises and has certain autonomy. It can take advantage of the fluctuation opportunity of the futures market to conduct pricing transactions at a favorable time, thus reducing the procurement cost; On the other hand, you can also make yourself in the middle of the price-limit mode through the second price-limit transaction with downstream consumer enterprises, and lock in the profit of trade through the price-limit transaction to avoid the risk of price fluctuation.
Second, how to conduct price trading in thermal coal trade
Different from the traditional trading method, in the point-price trading, the two parties do not directly determine the trading price of the goods, but take the agreed futures price in a certain month as the benchmark, and add and subtract a premium on this basis to determine it. In essence, spot trading is a pricing method of spot trading, and both parties do not need to participate in futures trading. This trade method has been widely used in international commodity trade, and the determination of premium and discount is often market-oriented, and the trade model is basically mature.