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What does futures do?
Futures and spot are completely different. Spot is actually a tradable commodity. Futures are mainly not commodities, but standardized tradable contracts with some bulk products such as cotton, soybeans and oil and financial assets such as stocks and bonds as the targets. Therefore, the subject matter can be commodities (such as gold, crude oil and agricultural products) or financial instruments.

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. Most people think that improper speculation in futures, such as short selling without goods, will lead to financial market turmoil, which is not correct. Going long and shorting at the same time is a healthy and normal trading market.

Extended data:

Contract:

The standardized contract made by the futures exchange stipulates that a certain quantity and quality of the subject matter will be delivered at a specific time and place in the future.

Futures commission: equivalent to the commission in the stock. For stocks, the expenses of stock trading include stamp duty, commission and transfer fees. Relatively speaking, the cost of engaging in futures trading is only the handling fee. Futures commission refers to the fees paid by futures traders according to a certain proportion of the total contract value after the transaction.

main feature

1 The commodity variety, trading unit, contract month, margin, quantity, quality, grade, delivery time and delivery place of futures contracts are all 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.

2. 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.

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

Futures contracts can fulfill or cancel contractual obligations through settlement of spot or hedging transactions.

Minimum fluctuation price: refers to the minimum fluctuation range of the unit price of futures contracts.

Maximum fluctuation limit of daily price: (also known as price limit) means that the trading price of futures contracts shall not be higher or lower than the prescribed price limit within a trading day, and the quotation exceeding this price limit will be deemed invalid and cannot be traded.

Delivery month of futures contract: refers to the delivery month stipulated in the contract.

Last trading day: refers to the last trading day when a futures contract is traded in the contract delivery month.

Futures contract trading unit "hand": Futures trading must be carried out in an integer multiple of "hand", and the number of commodities in each contract of different trading varieties should be specified in the futures contract of that variety.

Transaction price of futures contract: it is the value-added tax price of benchmark delivery goods of futures contract delivered in benchmark delivery warehouse. Contract transaction prices include opening price, closing price and settlement price.

If the buyer of a futures contract holds the contract until the expiration date, he is obliged to purchase the subject matter corresponding to the futures contract; And the seller of the futures contract, if the contract expires.

Then he has the obligation to sell the subject matter corresponding to the futures contract (some futures contracts do not make physical delivery when they expire, but settle the price difference. For example, the expiration of stock index futures means that the open futures contracts are finally settled according to a certain average value of the spot index. Of course, traders of futures contracts can also choose to reverse the transaction before the contract expires to offset this obligation.

References:

Baidu encyclopedia-futures