Large-scale manipulation: Although the futures market is a completely competitive market, there will still be some large companies with strong financial strength to manipulate futures prices, which will eventually lead to speculative fluctuations in commodity prices.
Relationship between supply and demand: Futures investment is the product of market economy, and its price changes are influenced by the relationship between supply and demand in the market. When supply exceeds demand, futures prices fall; On the contrary, futures prices will rise.
develop
The earliest futures market in history was Japan in the edo shogunate era. Because the price of rice at that time had a great influence on economic and military activities, rice merchants decided to buy and sell rice in stock according to the output of rice and the market's expectation of rice.
In the1970s, Chicago Mercantile Exchange and CBOT innovated many futures products, and vigorously developed many financial futures products, making financial futures the mainstream of the futures market. In the1980s, the Chicago Stock Exchange began to develop electronic trading platforms. At the end of 1990' s, there was a trend of mergers and acquisitions in various countries' exchanges.