The function of futures: (1) Find the price: Because futures trading is a contract transaction of forward delivery goods, a lot of market supply and demand information is concentrated in this market. Different people, from different places, have different understandings of all kinds of information and different views on the forward price through open bidding. In practice, the process of futures trading is a comprehensive reflection of the unilateral expectations of supply and demand and price trends in a certain period of time in the future. This kind of price information has the characteristics of continuity, openness and anticipation, which is conducive to increasing market visibility and improving resource allocation efficiency.
(2) Avoiding risks: The occurrence of futures trading provides a place and means for the spot market to avoid price risks. Its main principle is to use futures and spot markets for hedging transactions. In the process of actual consumption operation, in order to prevent the ever-changing commodity prices from increasing costs or decreasing profits, futures trading can be used for hedging, that is, buying or selling futures contracts with the same number but opposite directions in the futures market, so that the gains and losses of futures trading in the spot market can offset each other. Lock in the consumption cost or commodity sales price of the enterprise, maintain the established profit and avoid the price risk.
(3) Hedging: When buying or selling a certain amount of spot commodities in the spot market, selling or buying the same kind and quantity of futures commodities (futures contracts) in the futures market, and using the profits of one market to compensate the surplus of another market, thus avoiding the price risk.
This is about the role of futures market in futures examination. The answer. 892