Futures can be broadly divided into two broad categories, commodity futures and financial futures. The main varieties of commodity futures can be divided into agricultural commodity futures, metal futures (including basic metals and precious metal futures), energy futures; the major varieties of financial futures can be divided into foreign exchange futures, interest rate futures (including medium and long-term bond futures and short-term interest rates Futures) and stock index futures. The so-called stock index futures are futures that use the stock index as the subject. Both parties deal with the price level of the stock index after a certain period of time, and the delivery is made through the cash settlement spread.
The so-called interest rate futures refers to futures contracts that use bond securities as the subject matter. It can avoid the risk of changes in the price of securities caused by fluctuations in bank interest rates. There are many kinds of interest rate futures, and there are many classification methods. Generally, interest rate futures can be divided into short-term interest rate futures and long-term interest rate futures according to the terms of the contract.
The so-called foreign exchange futures refers to futures contracts that use the exchange rate as the subject and are used to avoid exchange rate risks. It is the earliest breed in financial futures. At present, the main varieties of foreign exchange futures trading are: US dollar, British pound, German mark, Japanese yen, Swiss franc, Canadian dollar, Australian dollar, French franc, Dutch guilder and so on. From a worldwide perspective, the main market for foreign exchange futures is in the United States.
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