In daily life, we often encounter the fluctuation of commodities, such as the hogs, which directly affects the cost of our vegetable basket. But did you know that with hog trading, we can not only better understand these movements, but also participate in this dynamic market? As a special financial tool, hogs can help us lock in the risk of hogs rising and falling. In this article, we will give you a detailed introduction to how to buy live pigs, and analyze the rules of live pig trading.
Hog is a financial contract that allows an investor to buy or hog at a specific time in the future as determined on today's contract. Why can it lock in the risk of the rise and fall of the hog?Because it's like you book a hog in advance for a certain day in the future, no matter how the market changes at that time, your purchase or *** has already been fixed.
If we want to trade live pigs, we must first open an account in a **company**, and after opening, we can associate the bank card with this account and trade on the **APP of this company. It should be noted that different ** companies may give different ** conditions for opening an account (such as different handling fee rates), and we can carefully choose the most suitable company for us to open an account before opening an account.
In China, live pigs are mainly traded on the Dalian Commodity Exchange (hereinafter referred to as "DCE"), which stipulates detailed information such as the quantity, quality, and delivery time of live pigs.
According to DCE's ** contract details:
Pig **Unit of TradeIt is 16 tons of lots, which means that 1 lot of live pig ** contract is 16 tons of live pigs.
Pig ****UnitsIt's a ton of dollarsMinimum trading marginis 5 of the contract value. This means that if you see that the price of a hog contract is 10,000, and this is actually 10,000 yuan, since the trading unit of hog is 16 tons, the value of this hog contract is in fact 16 10,000 = 160,000 yuan. Since the minimum trading margin is 5 of the contract value, then the minimum capital requirement you need to trade this contract is 160,000 5% = 8,000 yuan lot. Please note that this is only the minimum capital requirement and your **company may ask you for higher fees and margin rates.
Trading hoursIt is 9:00 a.m. to 11:30 a.m. and 13:30 p.m. to 15:00 p.m. every Monday to Friday, except for holidays and holidays stipulated by the exchange.
Hog ** contractTransactions**It's lh. If you see a contract that starts with lh, then the breed of this contract is a hog.
Pig **Contract MonthIt's the month. For example, if you see a hog contract with LH2409, it means that the expiration month of this contract is September 2024. If it's LH2411, it means the hog ** contract expiring in November 2024.
Pig **Last trading dayIt is the 4th to last trading day of the contract expiration month. This means that if you buy a hog**, the deadline for you to close your position is the 4th trading day ahead of the contract expiration month (the month shown on the contract ** mentioned above). If you don't make any moves on this trading day, the exchange or ** company may force you to close your position.
Pig **Last Delivery DateIt is the 3rd trading day after the last trading day. The meaning of this fine print is that if you are not buying live pigs** for the purpose of obtaining funds through trading, but really want to get real live pigs in the contract expiration month, you can apply to DCE, and DCE will give you the corresponding tonnage of live pigs in the contract at the designated warehouse on the 3rd trading day after the last trading day.
Knowing the specific rules of hog trading, let's take a look at the ** and sell. You should find that after opening an account and opening a trading app, we can choose to sell or sell the hogs. The "** and "sell" here are actually the changes in the **future hogs**.
When youWhen you are a hog, you are actually going up in the future. It's like you see in the supermarket that a product you often buy is about to go up in price, so you sign a contract with the supplier, asking him to sell the product to you in the future at the lower ** agreed upon now. In the hog market, if the hog market really rises in the future, you can sell these contracts at the high and thus earn the difference.
On the contrary, when you:SellWhen you are a hog, you are actually going down in the future hogs. It's like you have a lot of inventory of a certain product, and you have a hunch that this product is about to be, so you choose to sign a contract with a customer to let him buy these stocks in the future at the agreed ** now, so as to avoid losses in the future. In the hog market, if the hogs are real, you can buy them back when they are low, thus earning the difference by buying low and selling high.
In short, selling hogs is trading based on your judgment of the future market trend. If you think it's going to go up, you're going to do itIf you think it's going to go down, you sell. By doing so, you can seek opportunities to make a profit in the midst of volatility. However, it should be noted that the market is more risky, and fluctuations may lead to losses, so it is necessary to fully understand the market and make prudent decisions before trading.
Hopefully, the above information will be helpful in your future trading decisions.
Hogs**