The role of avoiding risks: In the market economy, commodity producers and operators will encounter all kinds of risks, and they often face price fluctuations. For price risk, commodity producers and operators and commodity speculators have completely different attitudes. Speculators try to make profits by buying at a low price and selling at a high price to predict the price trend. Speculators are "risk preference". For producers and operators, it is a kind of "risk aversion" to produce products through the input of various factors, and then obtain sustained and stable profits through sales, rather than obtaining speculative income by consciously taking price risks. If commodity prices fall, producers, distributors and processors of commodities will suffer losses during the period of holding commodities. Similarly, enterprises and individuals who need to continuously buy a certain commodity as raw materials may also suffer losses due to rising prices. Whether new products can be sold at expected prices and whether raw materials can be purchased at lower prices are the main problems that often plague producers and operators. The hedging function of futures market provides a good way for producers and operators to avoid, transfer or disperse price risks, which is also the main reason for the development of futures market.

The role of price discovery: First of all, there are many participants in futures trading, and thousands of buyers and experts gather together to compete, which can represent the strength of both supply and demand and contribute to the formation of prices. Secondly, most traders in futures trading are familiar with a commodity market, with rich business knowledge, extensive information channels and a set of scientific analysis and forecasting methods. They bring their own information, experience and methods to the market, and the futures prices formed through competition actually reflect the predictions of most people, so they can closely represent the changing trend of supply and demand. Thirdly, the transparency of futures trading is high and the competition is open and fair, which helps to form a fair price. Therefore, the price found in futures trading is highly authoritative.