First of all, let's understand futures: futures trading refers to "standardized contracts" (that is, "futures contracts") for selling specific commodities. Futures contracts have uniform provisions on the quality, specifications, delivery time and place of goods, and the only variable is the price of goods. After paying a certain margin, buyers and sellers can openly bid through commodity futures exchanges according to certain rules. In the spot market, buyers and sellers make delivery and pay, or conclude a transaction through negotiation and signing a contract. The quality, quantity, price, delivery time and place of the goods can be agreed in the contract.

(A) the concept of delivery

There are generally two ways to close positions in commodity futures trading (namely, closing positions). One is hedging liquidation; The second is physical delivery. Physical delivery is to fulfill the responsibility of futures trading through physical delivery. Therefore, futures delivery refers to the behavior of buyers and sellers of futures trading to make physical delivery of their respective expired open contracts in accordance with the provisions of the exchange when the contracts expire and end their futures trading.

(B) the role of delivery

Although physical delivery accounts for a small proportion in the whole futures contract, it is physical delivery and this potential that make the changes of futures prices synchronized with the changes of related spot prices, and gradually approach with the approach of contract expiration date. In essence, physical delivery is a kind of cash transaction, but physical delivery in futures trading is the continuation of futures trading, which is at the junction of futures market and spot market and is the bridge and link between futures market and spot market. Therefore, the physical delivery in futures trading is the basis of the existence of the futures market and the fundamental premise for the two major economic functions of the futures market to play.

Futures settlement

The organizational structure of futures market is composed of exchanges, members and customers step by step, which is a hierarchical market structure. Only members can enter the market for trading, and the exchange must be responsible for the credit status of members; Non-member customers must trade through member agents. Members are the main body of trading agents and take full responsibility for the transactions they represent. Therefore, members must control the financial risks of all customers. If the customer fails to perform the liability for compensation due to breach of contract, the member must perform the liability for compensation on his behalf and reserve the right of recourse. Corresponding to the multi-level organizational structure of the futures market, the settlement management system is also hierarchical. The first is the settlement of member companies by the clearing house of the exchange, which is the first-level settlement; Secondly, member brokerage companies settle accounts with customers, which is called secondary settlement. Finally, the risk classification of transaction by transaction corresponds to each market participant.

Business process of futures trading

After the customer has initially accepted the futures theory, and is familiar with and mastered the basic futures trading instructions and operation skills, they will enter the actual trading process.

(A) the formation of futures prices

There are two main ways to form futures prices: oral public bidding and computer matching.

1. Open tender method.

There are two kinds of oral public bidding methods: continuous bidding system (dynamic disk) and single price system (static disk).

2. Computer matching transactions

Computer matchmaking transaction is a kind of transaction method designed according to the principle of oral open bidding. Compared with oral public bidding, this trading method has the characteristics of accuracy and continuity. At present, China's futures trading adopts computer matching trading system.

What you see is the way of public bidding, and the person holding the notebook is the worker or agent of the exchange.