The delivery date of futures can be one week later, one month later, three months later or even one year later.
A contract or agreement to buy or sell futures is called a futures contract. The place where futures are bought and sold is called the futures market. Investors can invest or speculate in futures.
The delivery period of futures is in the future, and the price, quantity, method, place and other conditions of delivery and payment are stipulated in the contract at the spot. Commodities and securities can be traded in the futures market. Although the contract has been signed, the goods bought and sold by both parties may be in transit, may also be in production, and may not even be put into production. The seller may have goods or securities, or may not have them.
Extended data
Metal futures trading in the world is mainly concentrated in London Metal Exchange, New York Mercantile Exchange and Tokyo Industrial Products Exchange. In particular, the trading price of London Metal Exchange futures contracts is recognized as the pricing standard for non-ferrous metals trading all over the world. The copper futures trading of Shanghai Futures Exchange in China is growing rapidly.
The turnover of single copper product has surpassed that of New York Mercantile Exchange, ranking second in the world. Usually, non-ferrous metal futures are also called metal futures, and non-ferrous metals refer to all metals except ferrous metals (iron, chromium and manganese).
Among them, gold, silver, platinum and palladium are called precious metals because of their high value. The quality, grade and specification of non-ferrous metals are easy to be divided, with large trading volume, easy price fluctuation and storage resistance. It is very suitable as a futures trading variety. The main trading varieties include copper, aluminum, zinc, tin, nickel and aluminum alloy futures contracts, among which copper is the leading product, and it is also the first metal futures trading variety established, with a history of 100 years.
The emergence of futures trading provides a place and means for the spot market to avoid price risks. Its main principle is to use the futures and spot markets for hedging transactions.
In the actual production and operation process, in order to avoid the ever-changing commodity prices leading to rising costs or falling profits, futures trading can be used for hedging, that is, buying or selling futures contracts in the futures market with the same number but opposite trading directions, so that the gains and losses of futures and spot market transactions can offset each other. Lock in the production cost or commodity sales price of the enterprise, keep the established profit and avoid the price risk.
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