What does a complete futures trading process include?

A complete futures trading process includes five links: account opening, order placing, bidding, settlement and delivery. The delivery link is not a necessary link in futures trading, because in practice, futures trading mostly settles performance obligations through hedging and flat warehouse, so the proportion of entering the delivery link is actually very small. So, how do these links operate specifically? Let's talk about these links in the process of futures trading in detail.

1, open an account

After selecting the futures company, you can prepare to submit the entrustment application and open an account. Futures account implements real-name registration system registration, and customers are divided into natural person customers and legal person customers. Natural person customers must go through the account opening procedures by themselves and may not entrust others to do so. The futures account has no threshold and is completely free.

Step 2 order

There are four ways to order futures: written order, telephone order, online order and self-service terminal order. The trading instructions for placing an order include: futures trading variety, trading direction, quantity, month, date and time, and price. If you are optimistic about the price of goods in the market outlook and are ready to do more, you will choose to place an order and buy a position. If you are bearish on the commodity prices in the market, you will choose to sell and open a position in the direction of placing an order.

3. Bidding

There are two bidding methods: public bidding and computer matching. The trading system will close the transaction according to the priority order of the declared price from high to low, and then the declared time. The opening and closing prices are generated by call auction.

Step 4 solve

At the time of settlement, the profit and loss account of the trading account shall be cleared and transferred according to the settlement price announced by the futures company. Settlement includes settlement of members by exchanges and settlement of customers by futures companies.

Step 5 deliver

There are two ways of futures delivery: physical delivery and cash delivery. Commodity futures delivery is generally physical delivery, and for futures contracts such as financial futures that cannot be delivered in kind, cash delivery is generally adopted.