Futures Trading: Detailed Explanation of Futures Contracts

I. Concept of futures contract A futures contract is a standardized contract that is formulated by the futures exchange and provides for the delivery of a certain quantity and quality of goods at a specific time and place in the future.
According to the different subject matter of the contract, futures contracts are divided into commodity futures contracts and financial futures contracts.
Futures contracts are the objects of futures trading.
The difference between futures contract, spot, and forward is the standardization of contract terms

Second, the main terms of the futures contract and design basis (1) the name of the contract, the name of the species and the name of the listed exchange (2) There is a typo in the trading unit and the value of the contract - 10 tons / hand. The determinants of the size of the trading unit (scale of the target market, the size of the trader’s funds, the spot trading habits of the target, etc.)
(3) Quotation unit yuan/ton (4) Minimum changeable price - 1 yuan/ton, 2 yuan/ton, 5 yuan/ton (5) The maximum daily price volatility limit the up/down limit, the quotation beyond the price range is invalid. The determination of the ups and downs depends mainly on the frequency and volatility of the price fluctuations of the subject matter.
(6) The contract delivery month (7) The fixed time of the transaction.
(8) The last trading day of the transaction on the last trading day in the contract delivery month (9) Delivery date (10) There is a domestic or international standard for the delivery level. Substitutes may be used, but uniform exchange regulations and timely adjustments are used instead. Grades for premium and standard products.
(11) The warehouse designated for the delivery location and the financial futures have no delivery warehouse, but the exchange will designate the delivery bank.
(12) Transaction fee (13) Physical delivery and cash delivery (14) Transaction code: Molecular formula or abbreviation, cathode copper CU, aluminum AL, wheat WT, soybean meal M, natural rubber RU, fuel oil FU, gold AU .

Third, examples of questions:
1. The most essential difference between futures contract, spot contract and spot forward contract is ().
A: The advance of futures prices
B: The difference in the use of funds
C: Different income
D: Standardized answers to futures contract terms: D
2. Futures contracts are defined by () to provide a standardized contract for the delivery of a certain quantity and quality of goods at a specific time and place in the future.
A: China Securities Regulatory Commission
B: Futures Exchange
C: Futures Industry Association
D: Futures Brokerage Company Answer: B