Futures, whose English name is futures, is completely different from spot. Spot is actually a tradable commodity (commodity), and futures are mainly not commodities.

Futures is a derivative tool. According to the types of spot subject matter, futures can be divided into commodity futures and financial futures. Among those who participate in futures trading, arbitrageurs (or hedgers) lock in profits and costs by buying and selling futures, and reduce the risk of price fluctuation brought by time. Speculators take more risks through futures trading and wait for opportunities to profit from price fluctuations.

Many futures markets are developed from forward contracts, which refer to one-to-one intertemporal trading contracts, and the trading details are agreed by buyers and sellers themselves. Futures contracts are standardized by exchanges, allowing traders from all directions to easily match transactions on the same platform. Option is another derivative tool derived from futures contracts.

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Types of futures

1. Agricultural products futures: such as cotton, soybeans, wheat, corn, sugar, coffee, pork breast, rapeseed oil, natural rubber, palm oil, red wine, poultry and livestock.

2. Metal futures: such as copper, aluminum, tin, zinc, nickel, gold and silver.

3. Energy futures: such as crude oil, gasoline and fuel oil. Emerging varieties include air temperature, carbon dioxide and sulfur dioxide emission quotas.

4. Financial futures: such as treasury bonds futures and stock index futures.

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