"Advance order" generally refers to the advance order of a future transaction.
There are two ways to order, namely "oral agreement" and "written agreement".
Oral agreement is simple and easy, but the guarantee coefficient is not reliable, so the advance order is generally written agreement.
The written agreement shall specify the time, place, mode of transportation and freight of the "subject matter" (i.e. goods) between the buyer and the seller, the quantity and quality standard of the goods, the price, the method and time of payment, and the way to deal with objections.
Then the buyer will have to pay a certain percentage of the total house price "down payment".
The purpose of paying the "down payment" is to ensure that the transaction is executed as agreed. If the seller fails to implement the agreement, the "down payment" will be returned twice, and if the buyer defaults, the "down payment" will not be returned. The deposit can offset the purchase price at the time of transaction.
The advantages of "advance order" are: preparing for the transaction and having enough time to coordinate the relationship of the transaction. If the price trend of commodities is predicted accurately, the price difference between purchase and delivery may be greater than that of spot transactions, that is, the price will be "low in and high in order to obtain greater profits".
The disadvantage of "advance order" is that it is a commercial logistics chain, and as long as one link is stuck, it will lead to default. The most important thing is that if the price trend of commodities is predicted incorrectly, there will be a phenomenon of "AG low price" and it is impossible to lose money. Therefore, if the loss is greater than the "deposit", it is better to breach the contract.
As for the real "futures trading", it is another matter completely.