Futures, together with foreign exchange and stocks, are called "the three major trading markets in the world", and have been circulating among the chives with the title of "especially making money, but the risks are particularly fantastic".
So today, I will tell you what the futures market is and how it differs from the stock market.
First of all, futures ~ to put it bluntly, it's not as complicated and mysterious as everyone thinks ~
You can tell from the name-it's time for delivery.
To put it bluntly, it is to book in advance. You spent a penny on the Internet and bought a hotel private room package. The appointment will take effect at seven o'clock tonight and will not wait until it expires.
The hotel has prepared a private room and dishes for you at seven o'clock tonight. You should be there at seven o'clock tonight to settle the balance and then have a big meal.
This is actually a standard futures trading!
Only the contracts for coal in September, steel bars in August, soybean oil in 10, etc. are not reserved and traded in the futures market tonight.
To say the origin of this matter is actually related to the famous tulip tragedy in history.
At that time, the tulips were really crazy! Interested friends can learn about it ~
At that time, it was really easy to dig out a flower root from the soil and drag it to Amsterdam for a manor. Who can stand such profiteering?
So tulips in Europe are almost extinct, but businessmen can only move to the American continent and fool cotton farmers to help them grow tulips.
Due to the poor traffic conditions at that time, all European and American routes were sailboats.
Sailing boat You know, that thing runs by wind or waves, and it's really hard to say whether it's early or late.
However, if you arrive a day late, you are likely to be taken away by your peers who come in advance.
So the clever businessman had a flash of light and signed a contract with the florist in advance when the tulip was just planted.
According to the contract, the merchant pays the florist a fee as a deposit in advance, and then when the tulip is ripe, the florist can only sell it to the contract holder.
At the same time, in order to ensure the interests of both parties, the contract also stipulates that no matter what the market price of tulips is at the time of delivery, both parties can only trade at the price agreed at the time of signing the contract.
So businessmen don't have to worry about their flower roots being cut off by shameless colleagues. At the same time, in the acquisition season, no matter how others drive up the price of flowers, they don't have to worry, because the price will die.
For flower farmers, with this contract and deposit in hand, there is no risk in growing flowers themselves. Anyway, they will plant as much as the contract stipulates, which will not waste land and will not be depressed because of too many goods.
You can sell it if you plant it. Even if he doesn't buy it then, the deposit will not be refunded, nor will he lose money, and he will be given liquidated damages.
The two sides played happily for a long time, until one day, a bad purulent businessman, watching other colleagues bid up the price of flowers in the field, suddenly had an epiphany.
It suddenly occurred to him that I was actually losing money by doing business so honestly! !
Flower farmers grow flowers and have to transport them to Amsterdam themselves. Sailors are money, tariffs are money, and transport ships are money. If you encounter a typhoon or pirates on the road, you will not only lose everything, but also lose your life. It's really not worthwhile.
Anyway, as long as it can be pulled to Europe, tulips will definitely make a lot of money, and I am not worried about the taker. Why not just sell them flowers in the field at a high price?
On second thought, I sold the flowers to them, and I had to find someone to dig them myself, find a warehouse myself, and take care of the carriage myself. This is also money!
Why not sell the contract to them directly in Holland instead of coming back next time? !
Beautiful! Now even the travel expenses are saved!
Finally, the following autumn, a shameless historical figure appeared on the Amsterdam Stock Exchange.
Because he didn't intend to pay the final payment at all, he could use all his money to pay the down payment, so he ordered ten or even dozens times more tulips in advance than others in the United States, which directly caused the shortage of tulips.
Then when everyone was in short supply, he waved the contract in his hand and made a fortune.
Since then, the first "commodity futures trading" in human history has been so shameless?
At this point, many smart buddies understand what futures trading is about.
In fact, this is also a misunderstanding that many investors will have, thinking that what we trade in the futures market is coal, steel and cotton oil, and leverage is borrowed funds.
In fact, what we trade in the futures market is not commodities at all, but "order contracts".
It is precisely because we are trading an order contract, and each order contract is used to stipulate that "a commodity will be delivered at a specified price on a certain day in the future".
So in the futures market, we will see that the same contract will have 12 or even more trading options.
Instead of a stock, there is only one continuous upside-down order.
The iron deposits we see on the map are 2 1 10, 211? 2209 These refer to delivery in 2002 1 year1month, delivery in June1year, and delivery in September 2022.
The leverage used in the transaction is not borrowed funds such as stock allotment, but the goods deposit agreed in this contract.
So we only need to trade according to the standard of 10% of the real market price, but at the same time we can keep the profit of 100%!
Why do you say that?
Let's make an analogy.
You need 10 yuan to buy a pack of cigarettes, but since you signed a futures contract with the other party, you only gave the other party a deposit of 1 yuan, and what you took out of your pocket was only 1 yuan.
However, after the contract expired, the price of the tobacco bureau increased, and a pack of cigarettes 1 1 yuan.
At this time, you only need to fulfill the contract, let the other party give you cigarettes at the contract price of 10 yuan, and then sell them at 1 1 yuan, and you earn 1 yuan.
In fact, you only paid the cost of 1 yuan and gained the profit of 1 yuan.
People who do business honestly spend 10 yuan to buy cigarettes, and then sell them at 1 1 yuan, making a net profit of one yuan.
You earned 100% at one-tenth of the other party's cost, and the other party paid ten times your cost, but only earned 10%.
This is the source of futures profiteering.
If you think you have to pay for the goods yourself in the end, it will be too much trouble! And if you don't have that much money, it's the same sentence. Why don't you sell the contract yourself?
Let those guys dig roots in the field with their own money, and we can enjoy the first cup of milk tea in autumn. Think about it, isn't it beautiful ~
But risks and opportunities coexist. If the price of cigarettes drops by 9 yuan when it expires, it will be miserable and you will lose everything! !
Don't think, "I don't want it, can't I pick it up?" Of course not!
Because you have a contract, brother!
Although you didn't sign at the scene, your name has been on it since you bought this contract in the trading market! Just to atone!
Failure to execute is fraud! You will be prosecuted. Hey!
Therefore, there is a famous saying in the futures market: if you buy something you can't afford, you either spit it out or go to jail. Sell what you don't have, or hold it or squat!
Therefore, if you really want to lose all the deposit, you'd better sell the contract wholeheartedly.
If you don't sell it, your agent in the securities company will help you sell it, but if you let them sell it, the price will be quite touching?
This is the so-called explosion
However, although the loss is very miserable, it is not the worst ~
If it really reaches the point where the securities company sells it to you? I don't know, they may be lower than the price you dreamed in your nightmare?
So, you may still owe someone some money?
This is the most terrible nightmare in futures trading: through the warehouse?
Therefore, this is essentially an industry where opportunities and dangers coexist.
But overall, the opportunities here still outweigh the risks, and it is definitely a good place to make a lot of money!
Because as long as you are not confused, the best you can do is to lose the deposit, but if you earn it, it is easy to double or even ten times the money.
Bet one for ten, and be small and broad. It's exciting to think about it!
But when it comes to this, some people will ask: isn't this a big casino? What is the significance of speculation to the economy?
I'll tell you in secret, which means a lot!
Futures trading seems to be idling, but it is a super tool of great significance to investors and producers.
At the same time, it plays a very, very important role in protecting and promoting the whole economic operation!
Finally, don't get excited at the sight of "gambling one loses ten"!
There are risks in entering the market, and investment needs to be cautious!