What is a futures contract?
It is a standardized contract formulated by the exchange that stipulates the delivery of a certain quantity and quality of commodities and financial assets at a certain time and place.
What are futures?
Futures are completely different from spot goods. Spot goods are real goods (commodities) that can be traded. Futures are not goods, but are based on certain mass products such as cotton, soybeans, oil, etc. and financial assets such as stocks and bonds. The underlying standardized tradable contract. Therefore, the subject matter can be a certain commodity (such as gold, crude oil, agricultural products) or a financial instrument.
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.
Extended information:
Transaction characteristics
1. Bidirectionality
One of the biggest differences between futures trading and the stock market is that futures can be traded in both directions, and futures can be bought long or short. You can buy low and sell high when prices rise, and sell high and buy low when prices fall. You can make money by going long, and you can also make money by going short, so there is no bear market in futures. (In a bear market, the stock market will be depressed but the futures market will remain prosperous and opportunities will remain.)
2. Low cost
There are no stamp duties or other taxes levied on futures trading countries, and the only fee is the transaction fee. The procedures for the three domestic exchanges are around 2-3% of the transaction amount. Including the additional fees of brokerage companies, the unilateral handling fee is less than 1% of the transaction amount. (Low fees are a guarantee of success)
3. Leverage
Due to the use of margin, the original market price was magnified by more than ten times. Assume that the price of copper reaches its upper limit on a certain day (the upper limit in futures is only 3% of the settlement price on the previous trading day), and if the operation is done correctly, the capital profit rate will reach a huge 60% (3% ÷ 5%), which is 6 times the daily limit of the stock market. . (You can only make money if you have the opportunity)
4. Opportunities doubled
Futures is a "T+0" transaction, which maximizes the use of your funds. After grasping the trend, you can trade at any time and close your position at any time. (Convenient entry and exit can increase the security of your investment)
What does futures mean?
Futures are financial contracts that include the sale of financial instruments or physical commodities for future delivery (generally conducted on commodity exchanges). A futures contract is a contract for buying and selling futures. It is a certificate that agrees that both parties will trade at a specific time.
Futures are a way of trading across time. By signing a standardized contract (futures contract), buyers and sellers agree to deliver a specified quantity of spot goods at a specified time, price and other trading conditions. Usually futures are traded on futures exchanges, but some futures contracts can also be traded over the counter (OTC).
Extended information:
Futures trading methods
1. Manual outcry means that trading representatives in the trading hall conduct transactions through gestures and shouting. Chicago CBOT was the most representative manual trading pool in the early days. Each product was represented by a trading representative within an octagonal ladder, conducting frequent shouting and gesture trading.
2. Electronic trading means that the market adopts a central computer trading system to automatically match purchase and sale contracts based on transaction rules, the price and sequence of purchase and sale orders, or automatic matching. Traders can place orders in front of a recognized computer system and do not need to squeeze into a specific space to call out prices manually.
What is going on with futures contracts?
Problem Description:
What is going on with futures contracts?
Analysis:
When talking about contracts, people naturally think that a contract is a densely printed document. It is true that futures contracts do involve a lot of documents and paperwork, but futures futures account opening handling fee plus 1 point return 90% unconditional direct return to futures account 52ol.cn contract is not a piece of paper. A futures contract is a legally binding agreement through a futures exchange to agree to buy or sell a commodity in the future. Expressed in terms, futures contracts refer to standardized contracts formulated by futures exchanges that stipulate the delivery of a certain quantity and quality of physical commodities or financial commodities at a specific time and place in the future. Standardized terms of futures contracts generally include:
What are futures?
Futures are financial contracts that include the sale of financial instruments or physical commodities for future delivery (generally conducted on commodity exchanges). A futures contract is a contract for buying and selling futures. It is a certificate that agrees that both parties will trade at a specific time.
Futures are a way of trading across time. By signing a standardized contract (futures contract), buyers and sellers agree to deliver a specified quantity of spot goods at a specified time, price and other trading conditions. Usually futures are traded on futures exchanges, but some futures contracts can also be traded over the counter (OTC).
Extended information:
Futures trading methods
1. Manual outcry means that trading representatives in the trading hall conduct transactions through gestures and shouting. Chicago CBOT was the most representative manual trading pool in the early days. Each product was represented by a trading representative within an octagonal ladder, conducting frequent shouting and gesture trading.