1 thought on “What do futures buy more and short of buying”

  1. Futures are called bullish futures, and buying and falling is called futures short.
    The long -term futures means that in the future, a future futures contract will rise, so it belongs to the buyer.
    . For example: If the price of cotton in the next three months will rise, you can buy cotton futures after three months. If the price of cotton really rises, then sell the futures in your hands. Therefore, through: the method of buying high prices at a low price.
    The reason for futures shorts is that future futures contracts will fall, so it is the seller.
    I assumption: It is expected that cotton prices will fall, and then borrowed cotton futures contracts from the exchange to sell on the market. After the cotton really falls, buy it at a low price in the market and return it to the exchange. The method of buying first and then buying the middle difference.
    Extension information:
    Futures, the English name is Futures, which is completely different from the spot. The spot is a real -trading goods (goods). The futures are mainly goods , Soybean, oil, etc., and financial assets such as stocks and bonds are standardized trading contracts.
    Therefore, this subject can be a certain product (such as gold, crude oil, agricultural products) or financial instruments.
    The days of credit futures can be a week later, one month, three months later, or even a year later.
    The contract or protocol for trading futures is called futures contract. The place where futures futures are called futures markets. Investors can invest or speculate on futures.
    The initial margin is the funds required to be paid when the trader is newly opened.
    It is determined according to the transaction amount and margin ratio, that is, the initial margin = transaction amount*adjustment of the deposit ratio. The current minimum margin ratio of the futures deposit system of my country is 5%of the transaction amount, and international is generally between 3%and 8%.
    Is when the deposit book balance is lower than maintaining the deposit, traders must supplement the security deposit within the specified time to make the balance of the deposit account. Have the right to implement forced liquidation.
    C settlement refers to the liquidation of the transaction profit and loss status of the transaction of the transaction based on the settlement price published by the futures exchange.
    The delivery means that when the futures contract expires, according to the rules and procedures of the futures exchange, the two parties to the transaction through the transfer of goods ownership contained in the futures contract have been settled to the end of the period.
    The main features
    1. The product varieties, trading units, contract month, margin, quantity, quality, grade, delivery time, delivery location of futures The variable is the price. The standard for futures contracts is usually designed by the futures exchange and is listed and approved by the state regulatory agency.
    2. Futures contracts were sold under the organization of the futures exchange. They have legal effect, and the price is generated in the exchange of the exchange. Computer transaction.
    3. The performance of futures contracts is guaranteed by the exchange and does not allow private transactions.
    4. Futures contracts can perform or lift the contract obligations by settle in stock or hedge transactions.

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