What does it mean to charge an egg?
Charge the price of eggs.
The meaning of this sentence is to say how much the price of eggs is. Point price, also known as price. It refers to a trading method that uses the futures price of a certain month as the pricing basis, and uses the futures price plus the premium and discount agreed by both parties to negotiate and determine the price of the spot commodity traded by both parties.
What does spot trading mean?
Point price trading means that the two parties to the transaction refer to the real-time trading market in the futures market, take the futures transaction price of the current month or a certain future month as the benchmark, and add or subtract the premium and discount determined by the two parties in advance as the purchase and sale contract signed by the two parties. The price trade method, that is, after the buyer and the seller negotiate the premium level and confirm the price and quantity, they can sign the raw material purchase and sale contract according to the general trade terms.
In short, spot price trading is the trading method of futures price (target of spot price, variable) + premium (fixed). Among them, the premium refers to the difference between the spot transaction price and the futures price. If the spot price is higher than the futures price, it is called the spot premium or the futures premium, and vice versa is called the spot premium or the futures premium. According to the ownership of price-setting rights, price-point transactions are divided into buyer-point transaction and seller-point transaction. If the right to determine the transaction time belongs to the buyer, it is called buyer-point transaction; otherwise, it is seller-point transaction. Due to the sharp price fluctuations in the futures market, the price point trading method is adopted for pricing, so that enterprises can choose a satisfactory price more flexibly, thereby better hedging market risks, locking in product profits, improving the core competitiveness of enterprises, and maximizing The purpose of expanding the market.
【Expanded information】
1. Advantages of spot price trading
The point price mode is actually an extension of the futures hedging business of enterprises. Manufacturers and traders can determine the final settlement price based on the futures price with the highest degree of marketization, and effectively bypass the delivery in futures trading, thereby effectively saving Closing costs. For manufacturing enterprises, on the one hand, the pricing model effectively stabilizes the sales price and locks in operating profits; on the other hand, although the enterprise transfers the pricing power to the market, it can still be based on the spot market and its own situation. Water to ensure its own interests.
For traders, on the one hand, the pricing model can change the previous situation of passively accepting quotations from coal companies, and has a certain degree of autonomy. They can take advantage of fluctuations in the futures market to conduct price trading at a time that is beneficial to them, thereby reducing Purchasing costs; on the other hand, you can also place yourself in the middle of the price point mode by conducting secondary price point transactions with downstream consumer companies, lock in trade profits through point price transactions, and avoid the risk of price fluctuations.
2. How to carry out point price transactions in thermal coal trade
Different from the traditional trading method, in the price-point transaction, the trading parties do not directly determine the transaction price of the commodity, but use the agreed futures price of a certain month as the benchmark, and then add or subtract a premium to determine the price. Point price trading is essentially a way of pricing spot trade. Both parties to the transaction do not need to participate in futures trading. This trading method has been widely used in international bulk commodity trade, and the determination of premiums and discounts is often adopted. The business model is basically mature.
What does pip mean in futures trading
Point price, also known as price. It refers to the transaction method that uses the futures price of a certain month as the pricing basis, and the futures price plus or minus the premium and discount agreed by both parties to determine the price of spot commodities bought and sold by both parties.
Point price trading is essentially a way of pricing spot trade, and both parties to the transaction do not need to participate in futures trading. In some commodity trades, such as soybeans, copper, oil and other trades, spot price trading has been widely used.
Point price is a pricing method for futures delivery, that is, for a certain forward-delivered commodity, instead of directly determining its commodity price, it only determines the premium or discount. Then, within the agreed "point price period", the futures price of a major international futures exchange on a certain day is used as the base price of the point price, plus the agreed premium and discount as the final settlement price.
Can you give an example of futures point price?
as follows.
? Futures price point transaction case, point price transaction case Futures market locking price and point price transaction Some people may associate pricing power with a certain market participant's trading behavior or trading method. For example, when a warehouseman sells his inventory in the futures market, especially when the price he sells in the futures market still has a profit, we call it locked price or locked profit; or It is related to the "point price" in the futures market. It is taken for granted that the point price is the pricing, which is the pricing power of the futures market.
? Warehouses with inventories sell in the futures market to lock in prices and sometimes profits. Under special circumstances, there is no profit, and the warehouse must also sell, because hedging transactions will reduce losses when the market plummets. This kind of selling behavior is actually to avoid risks. If the futures point price is finally closed from the futures market, it is a typical hedging. The price the warehouseman sells in the futures market may not be the price he expects at all, but from the perspective of risk prevention, he must sell at the current price. If the price of any transaction in the futures market is called pricing, then after bargaining with hawkers in the free market, the futures account opening fee plus 1 cent will be returned to 90% unconditionally and directly returned to the futures account 52ol.cn. The transaction price can also be called pricing. For pricing, does the futures point price also have pricing power in the free market?
? The so-called spot price transaction means that the buyer and the seller agree that the futures spot price will be at a certain time in the future. The two parties will complete the spot transfer transaction based on the closing price of a related product in the futures market plus the agreed basis value. The futures spot price will be used as the performance price.