In the futures market, most futures contracts bought and sold by traders are closed in the form of hedging before expiration. In other words, people who buy futures contracts can sell them before the contract expires; People who sell futures contracts can buy futures contracts to close their positions before the contract expires. It is allowed to buy before selling or sell before buying. Generally speaking, physical delivery in futures trading is only a small part.
The object of futures trading is not the entity (subject matter) of commodities, but the standardized contract (subject matter) of commodities.
The purpose of futures trading is to transfer price risk or gain risk profit.
Futures trading is an organized trading method developed on the basis of spot trading and conducted by buying and selling standardized futures contracts on futures exchanges.
In the futures market, most futures contracts bought and sold by traders are closed in the form of hedging before expiration. In other words, people who buy futures contracts can sell them before the contract expires; People who sell futures contracts can buy futures contracts to close their positions before the contract expires. It is allowed to buy before selling or sell before buying. Generally speaking, physical delivery in futures trading is only a small part.
The object of futures trading is not the entity (subject matter) of commodities, but the standardized contract (subject matter) of commodities.
The purpose of futures trading is to transfer price risk or gain risk profit.