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How does the futures exchange manage the huge funds in the fund pool?
First of all, the funds are not in the exchange, and the exchange is just a trading platform. The interest on the occupied margin belongs to the futures company. Futures trading is developed by commodity producers from forward contract trading in spot trading in order to avoid risks. In forward contract trading, traders gather in commodity exchange places to exchange market information, look for trading partners, and sign forward contracts through auction or negotiation between both parties, that is, futures expire at the same time, and both parties end their obligations by physical delivery. In frequent forward contract transactions, traders find that there is a price difference or interest difference in the contract itself due to the fluctuation of price, interest rate or exchange rate, so they can make profits by buying and selling contracts without waiting for physical delivery. In order to adapt to the development of this business, futures trading came into being. Futures trading is a standardized contract trading method in which investors buy and sell various commodities on the futures exchange after paying a deposit of 5%- 15%. Ordinary investors can make a profit by buying low and selling high or selling high and buying low. Spot enterprises can also use futures to hedge and reduce their business risks. Futures traders generally buy and sell futures contracts through futures brokerage companies. In addition, the obligations they have to undertake after buying and selling the contract can be relieved by reverse trading (hedging or liquidation) before the contract expires.