International futures are futures transactions established outside mainland China. Products on exchanges in the United States, Europe, London, etc. are common futures trading contracts.
A futures contract refers to a standardized contract that is uniformly customized by a futures exchange and stipulates the delivery of a certain amount of subject matter on a specific day or location in the future. Some U.S. futures contract varieties such as soybeans and copper will have an impact on domestic futures prices. Domestic investors can refer to external market prices. Large traders and manufacturers can also conduct hedging based on external market conditions to offset spot trading losses.
The development history of international futures:
In 1848, the Chicago Board of Trade was established, launching a standard contract system and implementing a margin trading system, which led to the birth of futures trading in the true sense.
The establishment of the Hong Kong Futures Exchange in 1866 marked a milestone in the development of domestic investors into international futures.
On November 26, 1990, the Shanghai Futures Exchange officially came into operation, promoting the rapid development of domestic futures.
In 2009, China's total commodity futures trading volume surpassed that of the United States and ranked first in the world, accounting for 43% of the world's total. Futures have become one of the investment products that Chinese investors pay most attention to.
Comparison of international futures and domestic futures: Both are the same in terms of trading system, and can be short or long, T+0 trading. The difference is that
1. International futures are complete in variety and coverage: including foreign exchange futures, precious metal futures, energy futures, various mini contracts, and options, supplementing the vacancies in the internal market.
2. Continuous trading hours: The world rolls 24 hours a day, and the trading hours are long, which makes up for the risk of large short gaps caused by domestic futures trading holidays and market closures.
3. High leverage ratio: the margin ratio is about 5% to 10%, and the margin is cheaper.
4. The regularity is better than domestic futures: the prices of major overseas exchanges are authoritative, time and trend are continuous, and the trading mechanism is more mature and reliable.
5. Meet the diversified investment needs of customers: Financial futures have a relatively low entry threshold and can be used for pure speculation, arbitrage, and hedging transactions with a wide range of varieties.
6. Low handling fees: no taxes, no spreads, and no overnight interest.