Futures contracts (futures for short) refer to contracts that must be bought and sold through commodity exchanges. The contract stipulates that the buyer and the seller will deliver and pay a standardized quantity of goods or financial instruments at a specific price at a specific time in the future. There is a fixed place for futures trading, which is the commodity exchange. It is a non-profit member organization, which provides a fair competition and organized system for futures traders and is protected and restricted by law. The exchange itself does not interfere in trading, nor does it manipulate and control prices. Instead, members trade for themselves or customers inside and outside the trading hall, and the trading price is completely formed by traders through open bidding competition in the trading hall. Futures contracts are standardized. The transfer of futures contracts is designed to be realized only by gestures, without legal endorsement like other property rights certificates and financial securities. For contracts such as forward delivery contracts, it is difficult to change hands before physical delivery due to different specifications and terms. This result greatly simplifies the process of futures contract trading, so that futures contracts can be bought and delivered continuously without any inconvenience in settlement; At the same time, it also enables those who wish to transfer the risk of price fluctuation through futures trading to achieve their goals smoothly. The essence of standardization of futures contracts also brings a popular point to futures contracts. The negotiation and terms of a forward contract transaction are all discussed by experts from both buyers and sellers, which is by no means beyond the reach of ordinary people or even "amateurs". Therefore, futures trading is not as difficult to participate as other kinds of transactions. Futures contracts have solved almost all difficult technical problems, and the only question left to the exchange is: what is the price? Therefore, we say that as long as you have a basic understanding of futures trading, a rational analytical mind on futures price trends, and a certain economic strength and decisive personality to bear risks; Whether you are a producer or an operator of a specific commodity, you can calmly go to the futures market to win the due risk and return.

The term loan contract is the target of futures trading. The purpose, or main function, of a futures contract is not to constrain the contract holder to perform the actual delivery responsibility, but mainly to serve as the carrier of term lending transactions. Without such a ruling body, it is difficult to implement short-selling operations such as futures trading in practice. With this carrier, all parties to the transaction can freely express their views on the price situation and price trend, and realize their trading purposes through the practice of their views.