1.With small broad. Futures contracts can contract several or even dozens of times only by paying 5-10%'s performance bond. Because of the leverage effect of the margin system of futures trading, it has the characteristics of "small broad", and traders can use a small amount of funds for large trading, saving a lot of floating capital.
2.Two-way trading. In futures markets, you can buy first and sell later, you can also sell first and buy later, and the investment is flexible.
3.There is no need to worry about compliance. All futures transactions are settled through futures exchanges, and the exchange becomes the counterparty of any buyer or seller, guaranteeing each transaction. So traders need not worry about the performance of the transaction
4.Market transparency. The transaction information is completely public and the transaction is conducted in an open competitive manner, allowing traders to compete openly on equal terms.
5.Well-organized, high efficiency. Futures trading is a standardized trading, fixed transaction procedures and rules, ring ring ring, efficient operation, a transaction usually can be completed within a few seconds.
Futures trading is conducted by buying and selling futures contracts, while futures contracts are standardized. The standardization of futures contracts refers to all the provisions of futures contracts, other than the price, which are stipulated by the futures exchange in advance and have the characteristics of standardization. The standardization of futures contracts brings great convenience to futures trading. Both sides of the transaction do not need to negotiate specific terms of the transaction, save transaction time and reduce transaction disputes.
Futures trading must be conducted on a futures exchange. Futures exchanges are made up of members, only members can enter trading. Those who are on the sidelines should participate in futures trading only if they want to participate in futures trading. Therefore, the futures market is a highly organized market, and the implementation of a strict management system, futures transactions eventually completed in the futures exchange.
Two way trading and hedging mechanism
It is a two-way trade, futures traders can buy futures contracts as the beginning of Futures Trading (called to buy, you can also sell positions) futures contracts as the transaction start (called sold Jiancang), also known as "maikongmaikong". With the characteristics of two-way trade links and hedge in futures trading mechanism, this is not the most trading at the expiration of the contract delivery to fulfill the contract, but in the opposite direction when trading trading positions to lift performance obligations. Specifically, after buying a position, you can terminate the performance obligation by selling the same contract. After you sell the position, you can terminate the performance responsibility by buying the same contract. The characteristics of two-way trading and hedging mechanism of futures trading, attracting a large number of speculators involved in the transaction, because in the futures market, speculators have double profit opportunities, the futures price rises, can buy low and sell high profit, the price falls, can buy low and sell high profit, and speculators can hedge mechanism avoid physical delivery of trouble, the participation of speculators to greatly increase the liquidity of the futures market.
The implementation of futures margin system, that is to say the traders pay only a small amount of margin in futures trading, the transaction value of the 5%-10% general contract, contracts can be done several times or even dozens of times, the characteristics of futures to attract a large number of speculators involved in futures trading. A futures transaction characterized by a small amount of money that can be used for a larger value, and is figuratively referred to as a leverage mechanism". The leverage mechanism of futures trading makes futures trading have the characteristics of high yield and high risk.