Speculators' speculative strategies in the futures market can be classified as follows general principles: Ball Valve ,Steel Ball Valve,Stainless Steel Ball Valve,1 Inch Ball Valve Zhejiang Chenxiang import and export trade Co., Ltd , https://www.chenxiang-valve.com
1) Use commodity prices to fluctuate to speculate. The success or failure of speculation depends on the ability to accurately predict price movements. Since commodity price changes are affected by various complex factors, it is very difficult to accurately predict price movements. Therefore, such speculation is a risky speculation.
2) Speculation on futures spreads using different months of the same commodity. This speculative approach is also called "futures." The purpose is to use the change in the supply and demand relationship of goods at a certain time to earn different month futures spreads. This kind of speculative profit and loss is less and the risk is less.
3) Use spot price and futures spreads for arbitrage speculation. As the relationship between supply and demand changes, the difference between spot and futures is often transferred. Under normal circumstances, when demand exceeds supply, the spot price is generally higher than the futures price, so-called "spot premium"; when the supply exceeds demand, the futures price is generally higher than the spot price, so-called "futures rise." Speculators use their spread to speculate.
4) Make use of spreads between different exchanges to carry out arbitrage transactions. The so-called arbitrage refers to the transaction in the opposite transaction status in two transactions, in order to obtain the price difference. Due to the influence of various complicated factors, sometimes the price of the same product appears exactly the same in different exchanges. Speculators use this spread to speculate.
5) Use arbitrage speculation between spreads of alternative and convertible goods. There are clear alternatives to the commodities that are traded on some exchanges, such as corn, soy flour, and oats that can be used as animal feed substitutes. When the price of corn in the market rises, it may stimulate the rise of feed prices such as soy flour and oats, and speculators may use alternative commodity supply and demand relations and spreads for arbitrage and speculation. For convertible goods (such as soybeans, soybean oil, and soybean meal are convertible goods), speculators can also use their spreads for speculative speculation.