Futures is a financial derivative, and its price is influenced by many factors, including fundamentals, technical aspects, market sentiment and so on. When the futures price rises, it means that the market demand for the commodity increases, the supply is tight and the price rises. On the contrary, when futures prices fall, it means that market demand decreases, supply exceeds demand, and prices fall.
The following are several aspects of the relationship between futures prices and prices:
1. Fundamentals: Fundamental analysis focuses on the relationship between supply and demand of commodities, production costs and policy factors. When the basic orientation is good, demand increases, supply decreases, prices rise, and futures prices rise accordingly; When fundamentals weaken, demand decreases, supply increases, and prices fall, futures prices fall accordingly.
2. Technology: Technical analysis focuses on data such as price trends and volume, and predicts future price trends by analyzing historical price trends and volume changes. When the technical surface shows an upward trend in prices, futures prices may rise accordingly; When the technical surface shows a downward trend, the futures price may fall accordingly.
3. Market sentiment: Market sentiment reflects the expectations of market participants for future prices. When the market is optimistic, investors tend to buy futures and push prices up; When the market sentiment is pessimistic, investors tend to sell futures and push prices down.
It should be noted that the relationship between futures price and spot price is also an important factor affecting the rise and fall of futures. Generally speaking, futures prices and spot prices have certain linkage, but they are not always consistent. When the futures price deviates greatly from the spot price, there may be a regression phenomenon, which will affect the rise and fall of the futures price.
In short, futures are closely related to the rise and fall of prices. Understanding this relationship will help us better grasp the market dynamics in futures trading and improve the level of investment decision-making.