Futures is a standardized contract, the term means the future, futures can be understood as future commodities, futures have a clear month, the last trading day, delivery date and so on. Corresponding to futures is spot, which is actually a tradable commodity. In the futures market, futures cash can be traded, so what does futures cash mean?

What do you mean by cash transfer?

The whole process of cash conversion is to convert futures into spot transactions, and its investors turn future positions into spot positions. For example, the director of a rubber processing factory holds long rubber futures worth100000 yuan, but at present, raw materials are in short supply, and the director is afraid that he can't supply upstream and downstream enterprises. At this time, he can find his opponent in the futures market and reach an agreement with him to convert futures into spot, thus solving the problem of raw material supply.

When trading spot for futures, it is necessary to reach an agreement with the counterparty first. After obtaining the approval of the exchange, the exchange will close the position on its behalf according to the closing price agreed by both parties, and at the same time, both parties will conduct spot transactions of the same type and quantity as the subject matter of the futures contract according to the spot trading agreement reached.

The above is Bian Xiao's sharing, and I hope it will help everyone.