Futures trading: refers to the trading activities of buying and selling futures contracts on futures exchanges.
Futures contract: refers to the standardized contract formulated by the futures exchange, which stipulates that a certain quantity and quality of goods will be delivered at a specific time and place in the future.
Commodity futures: a futures contract with physical goods as the subject matter, a standardized agreement to buy and sell a certain number of physical goods on an agreed date in the future at the price agreed at the time of signing. Commodity futures trading is a standardized contract trading method for buying and selling specific commodities on futures exchanges.
Financial futures: refers to futures contracts with financial instruments as the subject matter. Financial futures trading refers to the trading mode in which traders conduct transactions through public bidding on a specific exchange and promise to buy or sell a certain amount of certain financial commodities at a pre-agreed price on a specific date or period in the future. Financial futures trading has the general characteristics of futures trading, but compared with commodity futures, its contract subject matter is not physical goods, but financial goods, such as foreign exchange, bonds, stock indexes and so on.
Stock index futures: Stock index futures refer to financial futures contracts with the stock price index as the subject matter. In specific transactions, the value of stock index futures contracts is calculated by multiplying the points of the index by the unit amount specified in advance. For example, the Standard & Poor's Index stipulates that each point represents $500, and the Hang Seng Index in Hong Kong is HK$ 50.
Margin: refers to the funds paid by futures traders in accordance with the prescribed standards for settlement and performance guarantee.
Initial deposit: The minimum performance bond that futures market traders must have in their deposits received accounts when placing an order to buy or sell futures contracts.
Performance bond: the bond deposited by the buyer and seller of a futures contract or the option seller in the trading account to ensure the performance of the contract.
Maintain margin: customers must maintain the minimum margin amount in their margin account.
Long and short: under the margin trading system, futures traders can buy first and then sell, or sell first and then buy. The former is called long trading, and the latter is called short trading. Short traders may not own the subject matter of the futures contract they sell, and they assume that they can buy back the futures contract at a price lower than the opening price.
Open position: refers to the behavior of futures traders to buy or sell and hold futures contracts.
Liquidation: refers to the behavior of futures traders to buy or sell futures contracts with the same variety, quantity and delivery month but with opposite trading directions, and to liquidate futures transactions.
Sub-position: members or customers of the exchange engage in futures trading in the name of other members or customers in order to over-open positions, so as to influence prices and manipulate the market, thus avoiding the position limit of the exchange, and their total positions in each seat exceed the position limit of the exchange for this customer or member.
Relocation: also known as relocation, refers to the transaction of moving the existing location forward or backward. The specific operation method is to close the existing positions and re-establish positions in the same direction and quantity in the near future or long term.
Forced liquidation: refers to the trading behavior of traders to manipulate the futures market price by controlling the futures trading volume or monopolizing the supply of spot deliverable commodities. Forced liquidation belongs to market manipulation in the futures market, and its direct consequence is that the futures market price seriously deviates from the real supply and demand price in the spot market. financial market
Position: A contract held by a trader is called a position.
Position reduction: in a transaction, the position held is opposite to the price trend, and the liquidation measures are taken to prevent excessive losses.
Settlement: refers to the settlement of the trading gains and losses of both parties according to the settlement price announced by the futures exchange. The settlement price of the day refers to the weighted average price of the transaction price of a futures contract according to the volume. If there is no transaction price on that day, the settlement price of the previous trading day shall be the settlement price of that day. Each futures contract is based on the settlement price of the day as the basis for calculating the profit and loss of the day.
Open position: refers to the number of open positions held by futures traders.
Delivery: refers to the process that when a futures contract expires, both parties to the transaction end the expired open contract by transferring the ownership of the goods contained in the futures contract in accordance with the rules and procedures of the futures exchange.
Settlement price for delivery: refers to the benchmark price used for commodity delivery at the time of delivery. The pricing of delivery goods is based on the settlement price, plus the premium of different grades of goods quality, as well as the premium of different delivery warehouses and benchmark delivery warehouses.
Warehouse receipt: refers to the standardized delivery certificate issued by the delivery warehouse and recognized by the futures exchange.
Position: a market agreement, that is, the number of futures contracts bought or sold without hedging. For buyers, it is said to be bulls; For the seller, it is called an empty position.
Futures discount and futures premium: in a specific place and within a specific time, the futures price of a specific commodity is higher than the spot price, which is called futures premium; The futures price is lower than the spot price, which is called futures discount.
Forward market: Under normal circumstances, the futures price is higher than the spot price.
Reverse market: under special circumstances, the futures price is lower than the spot price.
Bull market: a market with rising prices.
Bear market: a market with falling prices.
Position limit: refers to the maximum position held by a futures exchange for futures traders.
Minimum fluctuation price: refers to the minimum fluctuation range of the unit price of futures contracts.
Maximum fluctuation range limit of daily price: refers to that the trading price of futures contracts in a trading day shall not be higher or lower than the specified fluctuation range, and the quotation exceeding this fluctuation range will be considered invalid and cannot be traded.
Delivery month of futures contract: refers to the month when physical delivery is stipulated in the futures contract.
Last trading day: refers to the last trading day when a futures contract is traded in the contract delivery month.
The transaction price of a futures contract refers to the value-added tax-included price of the delivery standard of the futures contract delivered in the benchmark delivery warehouse.
Opening price: refers to the transaction price generated by call auction within five minutes before the opening of a futures contract. If there is no transaction price in call auction, the opening price is the first transaction price after call auction.
Closing price: refers to the final transaction price of the futures contract on that day.
Settlement price of the day: refers to the weighted average price of the transaction price of the futures contract on the day according to the volume. If there is no transaction price on that day, the settlement price of the previous trading day shall be the settlement price of that day.
Price limit: when a futures contract only has a buy (sell) declaration with a stop-loss price and no sell (buy) declaration with a stop-loss price within 5 minutes before the closing of a trading day, or it closes its position as soon as it has a sell (buy) declaration, but the stop-loss price has not been opened.
Transaction price: The computer automatic matching system of the exchange sorts the transaction declarations according to the principle of price priority and time priority, and automatically matches the transaction when the buying price is greater than or equal to the selling price. The matching transaction price is equal to the middle value of the buying price (bp), selling price (sp) and the previous transaction price (cp). Namely:
When bp≥sp≥cp, the latest transaction price =sp.
Bp≥cp≥sp, the latest transaction price =cp.
Cp≥bp≥sp, the latest transaction price =bp.
Highest price: Highest price refers to the highest transaction price of a futures contract in a certain period.
Lowest price: Lowest price refers to the lowest transaction price of a futures contract within a certain period of time.
Latest price: The latest price refers to the real-time transaction price of a futures contract on a certain trading day.
Fluctuation: Fluctuation refers to the difference between the latest price of a futures contract in a trading day and the settlement price of the previous trading day.
Maximum bid price: the maximum bid price refers to the immediate highest price applied by the buyer on the day of the futures contract.
Minimum selling price: the minimum selling price refers to the immediate lowest price that the seller applies for selling on the day of the futures contract.
Volume: Volume refers to the bilateral quantity of all contracts concluded in a certain contract trading period.
Limit order: refers to an order that must be executed at a limited price or better.
Revocation instruction: refers to the instruction of the investor to revoke the specified instruction.
Benchmark price: determined by the exchange and announced in advance. The benchmark price is the basis for determining the trading limit of the first day of the new listed contract.
Trading code: refers to the special code compiled by members according to these rules for customers to conduct futures trading.
Compulsory liquidation system: The Exchange will take compulsory liquidation measures against members who violate the rules by exceeding their positions or failing to add trading margin in time as required, as well as other violations.
Large-sum declaration system: when the speculative position of a member or investor in a certain position contract reaches 80% of the maximum position limit standard of speculative position stipulated by the exchange, the member or investor shall declare his capital and position to the exchange, and the investor shall declare through the brokerage member.
Additional margin: when the margin required by the customer is lower than a certain amount, the part that the brokerage company requires the customer to make up is called additional margin.
Floating gains and losses: unrealized gains and losses of open positions calculated at the settlement price of the day.
Daily debt-free settlement system: also known as daily mark-to-market, refers to the exchange's settlement of all contract profits and losses, trading deposits, handling fees, taxes and other expenses at the settlement price of the day after daily trading, and the one-time transfer of net accounts receivable and payable, and the corresponding increase or decrease of members' settlement reserves.
Today's profit and loss: the profit and loss of futures contracts calculated at today's settlement price. The profit of the day is included in the member settlement reserve, and the loss of the day is deducted from the member settlement reserve.
Physical delivery: refers to the process that when a futures contract expires, according to the rules and procedures of the exchange, both parties to the transaction end the open contract by transferring the ownership of the goods contained in the futures contract.
Cash delivery: refers to the delivery method of calculating the profit and loss of the open futures contract at the settlement price when the open futures contract is delivered, and finally settling the futures contract by cash payment. This delivery method is mainly used for financial futures and other futures contracts that cannot be delivered in kind, such as stock index futures contracts.
Centralized delivery: that is, the seller's standard warehouse receipt and the buyer's payment are all submitted to the exchange, and the exchange will handle the delivery matters centrally and uniformly.
Futures to spot: It means that both parties holding the contract reach a spot trading agreement through negotiation within the same delivery month, and settle their future positions at the agreed price, and at the same time make a considerable amount of payment and physical exchange.
Rolling delivery: refers to the delivery mode in which the seller's customers with standard warehouse receipts and selling positions take the initiative to deliver the contract after the contract enters the delivery month, and the exchange organizes the two parties to complete the delivery within the specified time.
Hedging transaction: Hedging refers to the trading activities in which the futures market is used as a place to transfer price risk, and futures contracts are used as temporary substitutes for buying and selling commodities in the spot market in the future, so as to insure the prices of commodities that you buy now, prepare to sell later or need to buy in the future. The basic feature of hedging is that the same commodity is bought and sold in the spot market and futures market at the same time, that is, at the same time of buying or selling the real thing, the same amount of futures is sold or bought in the futures market. After a period of time, when the price changes make the profit and loss in spot trading even, the losses in futures trading can be offset or compensated.
Basis: it is the difference between the spot price of a specific commodity and the price of a specific futures contract of the same commodity.
Arbitrage trading: buying or selling two related commodities at the same time, hoping to make a profit when hedging trading positions in the future. Arbitrage deals with the mutual price relationship between contracts, not the absolute price level.
Basic knowledge trading rules for futures beginners
Six basic rules
First, contract standardization.
The trading object of the futures market is futures contracts, which are standardized in terms of quantity, quality grade, delivery grade, premium standard of substitutes, delivery place and delivery time. And both parties need not negotiate the specific terms of the transaction, which facilitates the continuous trading of futures contracts, has strong market liquidity, greatly simplifies the transaction process and reduces the transaction cost.
Second, the deposit system.
Futures trading implements the margin system, that is, traders need to pay a small amount of margin in futures trading, and the margin is generally a certain proportion of the value of the futures contracts they buy and sell (generally 5%- 10%), which can complete several times or even dozens of times of contract transactions. Futures trading has the characteristics of high return and high risk because it can invest a lot of money with a small amount of money and has leverage effect.
Three, two-way trading and hedging mechanism
Two-way trading, that is, futures traders can buy futures contracts as the beginning of futures trading (called buying positions) or sell futures contracts as the beginning of trading (called selling positions), commonly known as "short selling". Linked to the characteristics of two-way trading is the hedging mechanism. In futures trading, most traders do not fulfill the contract by physical delivery when the contract expires, but by trading in the opposite direction to the opening position. Specifically, after buying a warehouse, you can cancel the performance responsibility by selling the same contract, and after selling a warehouse, you can cancel the performance responsibility by buying the same contract. The characteristics of two-way trading and hedging mechanism in futures trading attract a large number of futures speculators to participate in trading, because in the futures market, speculators have double profit opportunities: when futures prices rise, they can make profits by buying low and selling high; When prices fall, they can make profits by selling high and buying low, and speculators can avoid the trouble of physical delivery through hedging mechanism. The participation of speculators has greatly increased the liquidity of the futures market.
Four. No debt settlement system on the same day
The futures exchange implements the debt-free settlement system on the same day, also known as "marking the market day by day", that is, after the daily trading, the exchange settles the traders' profits and losses on that day according to the settlement price of that day. If the trader suffers serious losses and the funds in the margin account are insufficient, he is required to add margin before the market opens the next day, so as to achieve "no debt on the day". If the customer fails to add the margin on time, the futures company will forcibly close some or all of the customer's positions until the margin balance can maintain the remaining positions.
V. Price Limit System
The price limit system means that the trading price of futures contracts in a trading day shall not be higher or lower than the prescribed price limit, and the quotation exceeding this limit will be regarded as invalid and cannot be traded. The maximum price limit in the futures market is generally determined according to the settlement price of the previous trading day of the contract.
Six, the compulsory liquidation system
The forced liquidation system refers to the forced liquidation system implemented by the exchange or futures brokerage company to prevent further risk expansion when the trading margin of members or customers is insufficient and not replenished within the specified time, or when the number of positions held by members or customers exceeds the specified limit.
Trading characteristics of basic knowledge of futures beginners
I. T+0 transaction
On the day of futures trading, positions can be opened or closed, and the number of positions can be unlimited. You can trade at any time and open positions at any time.
Second, two-way transactions.
Futures trading can be long or short. When the price rises, you can buy low and sell high, and when the price falls, you can sell high and make up low. Going long can make money, and shorting can also make money, so there is no bear market in futures. One of the biggest differences between futures trading and stock market is that futures can be traded in both directions.
Third, margin leveraged trading.
Futures trading does not need to pay all the funds corresponding to the contract quantity, but only needs to occupy a certain margin according to the regulations of the exchange. It is equivalent to using only a small part of the funds to participate in the trading of 10 times of funds (the leverage of different futures contracts is different, about 10 times is more, and the highest leverage of stock index futures is 300 times), so the leverage of 10 times is generated, which provides a tool for xiaoboda, and the use of leverage is also the charm of futures trading. Leverage is a financial innovation tool, and there is no difference between good and bad. Being able to trade well and make full use of the leverage advantage of futures can create wealth for you quickly.
Fourth, domestic and international disk linkage, futures linkage
The close combination of domestic and international futures market linkage and futures spot linkage makes the changes of futures market more objective and avoids the occurrence of arbitrage opportunities, thus making futures trading more fair and just, and the possibility of artificial manipulation is almost zero.
(1) Futures are a reflection of spot prices, and futures themselves do not create prices. Changes in the futures market closely follow changes in spot prices. If the spot price rises, the futures price will also rise accordingly, and the increase rate may be slightly different, but there will not be much room, otherwise there will be arbitrage opportunities between futures and spot.
(2) With the development of domestic futures market becoming more and more perfect, the linkage of domestic and foreign futures prices becomes very close, which will not provide much room for cross-market arbitrage and make futures prices follow the corresponding changes in the international market.
Five, choose active varieties of active contract transactions.
A futures contract has an expiration date. For example, Shanghai Copper 160 1 is 20 16 1, and the time from listing to completion is 1 year. When choosing a transaction, you should choose the active month of the active variety, because there are many people involved and more funds, and it is easy to clinch a deal. You can see the active varieties and months by looking at the turnover. When the trading in an active month approaches the delivery month, the trading volume will decrease, and individual investors should quit and choose the next active month. Individual investors are not allowed to enter the delivery month, nor are they allowed to make physical delivery.
Trading in the futures market does not require paying all the capital.
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6. Debt-free transactions that day
After the market closes every afternoon, the exchange will settle the trading profit and loss of each trader on that day. If the margin is insufficient, it is necessary to make the available margin funds greater than 0 before the next trading day, otherwise it will be forced to close the position. Investors can add margin or voluntarily close some positions to ensure that the available margin funds are greater than 0. Therefore, investors are advised not to trade in Man Cang, leaving enough space for themselves.
Advantages of futures basic knowledge for beginners.
Compared with stocks, the advantages of futures are mainly reflected in the following aspects.
1. Stocks are traded at T+ 1, and futures are traded at T+0. Stocks can only be closed the next day, and futures can be opened and closed at any time on the same day. When the market changes are found to be unfavorable to them, futures can be closed quickly, or they can be bought and sold quickly when they find opportunities, while stocks can only be sold the next day even if they see the stock price fall. If they stop trading the next day, they will be firmly trapped and cannot be untied.
Second, stocks are one-way transactions and futures are two-way transactions. Futures can buy up (long) or sell down (short), so whether in a bull market or a bear market, futures can seize the opportunity to make money, while stocks can only buy up, the bull market makes money and the bear market loses money.
Third, compared with stocks, futures are more fair and just. Stocks are issued by listed companies, and the price of stocks only reflects the strength of listed companies. Its capital scale is limited and may be manipulated artificially. But every variety of futures is a response to the quality of an industry, which is more macro. In addition, the combination of futures and domestic and foreign futures prices makes the price of domestic futures more fair and reasonable, and it is almost impossible to be manipulated artificially.
Fourth, the price changes of stocks are often manipulated by bookmakers. Specifically, the rise and fall of a stock price is random, which is difficult to grasp and there is nothing to refer to. There are more elements of luck, and gambling is more likely to lose money. Moreover, domestic stocks are very distinctive. When retail investors enter the market, they often fall as soon as they buy it and rise as soon as they sell it. Investors should have a deep understanding of this.
Many people think that the leverage in futures makes the risk of futures greater than that of stocks. In fact, lever is just a tool. Leverage will bring you huge losses, and it will also bring you equally huge gains. There is no distinction between good and bad. How to make good use of leverage in futures requires investors to have a reasonable plan for their own transactions and conduct each transaction in a planned way.
6. Futures trading only needs to pay the handling fee. Due to the fierce competition of futures companies, the handling fee of futures companies is also very low, and the stock has to pay stamp duty. Coupled with the existence of T+ 1 and one-way trading mechanism, the systematic risk of trading is increased, and the stock trading of retail investors is easier to be played by bookmakers, while the systematic risk of futures trading is much smaller, and making money and losing money is more self-caused.
The biggest difference between spot platform and futures platform is that there is no supervision.
Now spot platforms are all over the country, and the trading varieties are even more varied. Mostly silver and crude oil. These platforms are generally named "XX Commodity Exchange", claiming to have the approval of the local government, and XX Company is its shareholder or investor. However, because these so-called spot platforms are not regulated, thousands of investors are cheated every year. Since there is no supervision, how can it be regarded as a formal and legal platform?
These spot platforms set up trading platforms privately, listed products privately, and imitated the trading rules formulated by the exchange, so in terms of form, these spot platforms are more like a "small futures exchange" with the same trading mechanism as futures. However, there are only four real futures exchanges in China, namely Shanghai Stock Exchange, Dashang Exchange, Zhengzhou Commodity Exchange and CICC. As a regular futures exchange, futures company, other futures-related institutions and futures practitioners in China, the CSRC has very strict requirements and regulations. Not any institution or anyone can engage in futures work, that is, the CSRC is the real regulatory department. In addition, there are futures industry associations and margin centers, and local governments have a wide range of management. However, as the manager of the financial industry, the spot platform is not approved and supervised by the Securities Regulatory Bureau. All operations are private. They can operate behind the scenes, misappropriate funds, manipulate the market and gamble with their customers. Obviously, the victims must be customers, because some institutions set up spot platforms to cheat customers of their money.
Risk disclosure: This information does not constitute any investment advice. Investors should not substitute such information for their independent judgment, or make decisions only based on such information. It does not constitute any trading operation and does not guarantee any income. If you operate by yourself, please pay attention to position control and risk control.