1, positive market: in general, the futures price is higher than the actual price, or the contract price is lower than the forward month contract price, and the basis is negative. The forward market is an ideal environment for hedging transactions.

2. Reverse market: An operation conducted by a trader in the futures market on the same trading day that is exactly the same as the original bought (or sold) futures contract in terms of variety, quantity and delivery date, but in the opposite direction.

Second, the reasons for the formation

1, positive market: the part of the futures price higher than the spot price is related to the size of the position fee, which reflects the time value in the formation of the futures price. The holding fee is related to the holding time. The closer to the delivery deadline, the lower the cost of holding goods, and the less the futures price is higher than the spot price.

2. Reverse market: Due to the large fund holdings and abundant funds, the seemingly speculative reverse price difference may not only lead to unfair trade and benefit transfer, but also cause huge fluctuations in the stock market.

Third, the application is different.

1. Forward market: If there is an oversupply in the market and the demand is relatively insufficient, the contract price in the latest month will drop more than the forward contract price, or the contract price in the latest month will rise less than the forward contract price. Or, at this time, you can carry out arbitrage operation, short the contract in the near month, and establish a long contract with the same position in the far month.

2. Reverse market: traders can hedge their positions through reverse trading, complete a complete trading process, close their trading positions and withdraw from the market.

Baidu encyclopedia-positive market

Baidu Encyclopedia-Reverse Trading