The original name of futures is futures. meaning. The buyer and seller don't have to accept the goods at the time of the deal. Instead, the buyer and seller agree to take delivery of the goods at a later date.

For example, we used to buy and sell things. Usually I give you money. You give me the goods directly. Now we agree to give the money to an intermediary organization as a guarantee. Then we discuss together in a few months or even a few years later to carry out the delivery of goods. That's why we Chinese call it futures.

I'll give you a layman's example. Your family sells cakes. I run to your store to get money to buy the cake directly. You collect the money. Cake to me. This is the most basic spot transaction. One hand pays, one hand delivers. And then I have a birthday. It's next month. I'll book a birthday cake for you a month in advance. I won't give you all the money. I'll settle the bill on the day of my birthday. This is called spot trading in the form of a forward contract. Later you realized that my method is bullshit. Because I booked your cake a month in advance. The price you gave was the price at that time. But when you sold it to me a month later, the price of some of the raw materials you needed to make the cake, such as cream cheese and bread, had gone up. But the price you sold me didn't go up. So you lost money. You felt bad about it. So you negotiated with me. But the price you offered was too high. I couldn't accept it. After a long discussion, we made a decision. We'll find a middleman. This intermediary quotes the price. We look at it. If I think the price is right, I'll buy it. If you think the price is right, you can sell. And then when it comes time to deliver the goods as stipulated by the middleman. You ship and I pay. This over time the formation of futures. After that question futures index is a more profound question. You just understand him as a market operation index on the line.

Futures trading characteristics

1, two-way

Futures trading and the stock market is one of the biggest differences between futures can be two-way trading, futures can buy more can also be sold short. When the price goes up, you can buy low and sell high, and when the price goes down, you can sell high and buy low. Do more can make money, and short can also make money, so that futures no bear market. (In a bear market, the stock market will be depressed while the futures market is still scenic and opportunities remain.)

2, low cost

The state does not impose taxes on futures transactions, such as stamp duty, the only cost is the transaction fee. The three domestic exchanges procedures in two-thousandths of a percent, three or so, plus the brokerage company's additional costs, the unilateral fee is also less than one-thousandth of the transaction amount. (Low cost is a guarantee of success)

3, leverage

The principle of leverage is the charm of futures investment. Trading in the futures market does not require the payment of all funds, domestic futures trading only need to pay 5% margin to obtain the right to trade in the future. Due to the use of margin, the original market was magnified by more than ten times. Assuming that the price of copper on a certain day sealed stop (futures stop only 3% of the settlement price of the previous trading day), the operation is right, the capital profit margin of 60% (3% ÷ 5%) of the huge, is the stock market stop 6 times. (There are opportunities to make money)

4, the opportunity to double

Futures are "T + 0" transactions, so that your capital application to the extreme, you grasp the trend, you can trade at any time, at any time to close the position. (Convenient in and out can increase the safety of investment)

5, greater than the negative market

Futures is a zero-sum market, the futures market itself does not create profits. In a certain period of time, without taking into account the entry and exit of funds and the extraction of transaction costs, the total amount of funds in the futures market is unchanged, the profit of the market participants from the loss of another trader. At the moment when the stock market enters a bear market, the market price shrinks dramatically, coupled with meager dividends, the state and enterprises absorb funds, and there is no short-selling mechanism. The total amount of money in the stock market will be negative for a period of time, and the total profit will be less than the loss. (Zero is always greater than negative)

Comprehensive national policies, the needs of economic development and the characteristics of the futures themselves have decided that the futures have a huge space for development. The full name of stock index futures is stock price index futures, which can also be called stock price index futures, futures, refers to the standardized futures contract with the stock price index as the underlying, and both parties agree that on a specific date in the future, the underlying index can be bought and sold according to the size of the stock price index determined in advance. As a type of futures trading, stock index futures trading has basically the same characteristics and processes as ordinary commodity futures trading.