ATFXWhat are the trading functions of agricultural product futures? Pay attention to black platforms

futuresIn trading, there is a type of product trading called "agricultural futures trading", and what functions does it include?Let's take a look together.

What are the trading functions of agricultural product futures?

The trading of agricultural futures has two main functions, namely price discovery function and risk management function.

Agricultural futures trading can reduce or avoid the high costs incurred by China due to the lack of futures markets in developed countries;Due to the short-term nature of price information in the agricultural spot market, which only reflects the supply and demand situation at a certain point in time, the Chinese agricultural futures market can reduce the lag caused by this characteristic;Futures prices play the role of benchmark prices, and the domestic agricultural futures market has become the pricing center in China.

The Government Work Report clearly requires the steady development of the stock market, accelerated development of the bond market, and active and stable development of the futures market. To develop modern agriculture and improve the rural market system, it is necessary to build agricultural product circulation facilities, develop new circulation methods, further regulate and improve the agricultural product futures market, and fully play the role of guiding production, stabilizing the market, and avoiding risks. The futures market has become an effective tool for enterprises to improve their operations, maintain value, and avoid risks. For many spot enterprises, the main function of the futures market is hedging.

The futures market has become a reference for national macroeconomic regulation, enhancing the effectiveness of macroeconomic regulation. The price information in the futures market reflects market expectations and can provide scientific reference signals for national macroeconomic regulation.

Meanwhile, the efficiency of price information transmission in the futures market is high, which has a significant impact on the spot market. National macroeconomic regulation information can be transmitted through futures price information, reducing the time delay of information transmission, improving policy implementation efficiency, and enhancing regulatory effectiveness.