Futures are relative to spot. Futures are the subject matter that is bought and sold now, but will be settled or delivered in the future. This subject matter can be gold, crude oil, agricultural products, financial instruments, financial indicators and other commodities. The delivery date of futures can be one week later, one month later, three months later or even one year later. A contract or agreement to buy or sell futures is called a futures contract. The place where futures are bought and sold is called the futures market. Investors can invest or speculate in futures. Improper speculation on futures, such as short selling stocks, will lead to financial market turmoil.

A. The commodity variety, quantity, quality, grade, delivery time and delivery place of a futures contract are established and standardized, and the only variable is the price. The standards of futures contracts are usually designed by futures exchanges and listed by national regulatory agencies. B. The futures contract is concluded under the organization of the futures exchange and has legal effect, and the price is generated by public bidding in the trading hall of the exchange; Most foreign countries adopt public bidding, while our country adopts computer trading.

C the performance of futures contracts is guaranteed by the exchange, and private transactions are not allowed.

D futures contracts can fulfill or cancel their contractual obligations through settlement of spot or hedging transactions.

Speculators aim at obtaining the price difference, and their income comes directly from the price difference. Speculators make a decision to buy or sell according to their own judgment on the trend of futures prices. If this judgment is the same as the market price trend, speculators can get speculative profits after closing their positions. If the judgment is contrary to the price trend, the speculator will bear the speculative loss after closing the position.