Hog futures is futures trading where the cargo is raw pork!

Futures trading is a way for investors to buy and sell standardized contracts of various commodities on futures exchanges after paying a margin of 5%-10%. The average investor can make a profit by buying low and selling high or selling high and buying low. Spot companies can also use futures to hedge and reduce their operational risks. Futures traders generally buy and sell futures contracts through the agency of futures brokers. In addition, the obligations that must be assumed after buying and selling a contract can be discharged through reverse trading behavior (hedging or closing out a position) before the contract expires.

Futures trading is the development of forward contract trading from spot trading by commodity producers to avoid risk. In forward contract trading, traders focus on the commodity exchange exchange market, looking for trading partners, through the auction or both sides of the negotiation to sign a forward contract, and so on the expiration of the contract, the two parties to the transaction to physical delivery to the end of the obligation. Traders in the frequent trading of forward contracts found that: due to price, interest rate or exchange rate fluctuations, the contract itself has a price difference or interest difference, so it is entirely possible to buy and sell contracts to profit, rather than having to wait until the physical delivery of profits. In order to adapt to the development of this business, futures trading came into being.

Features of futures trading

1. Futures trading only need to pay 5-10% of the performance margin can be completed several times or even dozens of times the contract transactions. Due to the leverage effect of the futures trading margin system, it has the

"small to big"

characteristics, traders can use a small amount of money to carry out bulk buying and selling, saving a lot of liquidity.

2. Two-way trading. The futures market can be bought and then sold, can also be sold and then bought, flexible investment.

3. No need to worry about fulfillment. All futures transactions are settled through the futures exchange, and the exchange becomes the counterparty of any buyer or seller, and guarantees each transaction. So traders don't have to worry about the fulfillment of the transaction

4. Market transparency. Transaction information is completely open, and transactions are conducted in an open bidding mode, so that traders can compete openly under equal conditions.

5. Well-organized and efficient. Futures trading is a standardized transaction, there are fixed trading procedures and rules, a ring ring, ring ring efficient operation, a transaction can usually be completed within a few seconds.