If you think
futures price
If it goes up, go long (buy)
Open position
), increase (sell) position, earn: price difference =
settlement price
-Opening price.
If you think futures prices will fall, then
underrate
(sell to open positions), fall (buy) to close positions, and earn: price difference = opening price-closing price.
It is generally easy to understand how long futures are, but it is not easy to understand how short futures are. Let's take shorting wheat as an example (the seller may not have the goods in hand when signing the sales contract) to illustrate.
Short futures
The principle of:
When you are at 2000 yuan per ton of wheat, it is estimated that the price of wheat will fall. you are in
forward market
Signed a (first-hand) contract with the buyer, for example, it was agreed that you could sell him 10 ton of standard wheat at a price of 2000 yuan per ton at any time within six months. (The value is 2000× 10=20000 yuan, and you should provide 2000 yuan according to 10% deposit.
Performance bond
The performance bond will change with the change of contract value. )
This is short selling (selling open positions). In practice, you are selling open wheat.
Futures trading contract
Why should a buyer sign a contract with you? because of him
Tend to rise
.
You may not have it in your hand when you sign the contract.
wheat
You don't really want to sell wheat. You are observing the market. If the market drops to 1.800 yuan per ton as you wish, you can buy 10 tons of wheat at 1.800 yuan per ton and sell it to the buyer at 2000 yuan per ton. After the contract is performed (your performance bond is returned to you), you will get:
(2000-1800) × 10 = 2000 (yuan) (the handling fee is generally10 yuan, which is ignored).
This is profit liquidation. In fact, you are buying a futures contract to liquidate primary wheat.
The buyer (not specified) who signed the contract with you lost 2000 yuan (the handling fee was ignored).
● Overall operation, you only need to sell one hand of wheat at 2000, and buy one flat at 1800, which is very convenient.
After the futures are opened, they can be closed at any time before the delivery date, or they can be bought and sold multiple times on the same day (generally, there is no handling fee for closing positions on the same day). If the price of wheat rises within half a year, you have no chance to buy low-priced wheat to close your position, you will be forced to buy high-priced wheat to close your position (the contract must be closed at the expiration), you will lose money, and the buyer who signed with you will make a profit.
If you close your position at 2200, you will lose money:
(2200-2000)× 10=2000 (yuan)+10 yuan handling fee.
The buyer (not specified) who signed the contract with you earned 2000 yuan (the handling fee was ignored).