Option trading of bulk agricultural products futures should be launched in time

Introduction: the price of domestic secondary soybean oil market declined slightly on March 3 The futures market has the function of avoiding the risk of the spot market, but the futures trading itself will also produce many risks In some cases, the hedging effect of the hedger using the futures contract can not be well realized However, with the introduction of option trading, investors can have more options when facing severe market price fluctuations and need to avoid risks Especially for farmers (agricultural cooperation organizations) and small and medium-sized enterprises, it is more suitable to use option trading to control market risk within their own control If we timely launch the option trading of mature futures, it will help to give full play to the futures market function, and help to gradually improve the variety market system At present, the domestic bulk agricultural products market is speeding up the pace of opening up, the market demand for futures trading is increasingly strong, and the introduction of bulk agricultural products futures options will provide more guarantee to promote farmers' income In this regard, we can learn from the successful experience of the United States in encouraging farmers to use the futures and options market of bulk agricultural products to avoid risks 9mw option trading is the extension of futures trading Investors have the right to buy or sell a certain number of futures contracts at a pre-determined price in a certain period of time in the future after paying a certain amount of premium through option trading, but they are not obliged to buy or sell In this way, the option buyer can avoid the adverse price risk Since 1993, the U.S Department of agriculture has introduced relevant preferential policies to encourage some farmers in Illinois, Iowa and Indiana to enter the CBOT option market and purchase the put option of corn, soybean and wheat, so as to protect farmers from being damaged by the decline of market price of agricultural products Buying put options for American farmers is as simple and practical as buying insurance for their own crops Because the option buyer can exercise or resell this right within the term of the option contract Beyond the specified time limit, the option contract will automatically expire, and the options purchased will also be void, and the loss is only "insurance premium (right and interest money)." In a risk aversion manual distributed to farmers by the 9mw national grain and seed foundation of the United States, the risk of futures price change, cash market risk, credit risk and human behavior risk are listed as the four major risks that American farmers must face When the farmer is carrying out spot trade, if there is no futures market position to preserve the value, the other party will think you are gambling, and the probability of trading success will be very low Farmers must provide their hedge positions when they lend to banks From the development experience of the international market, the futures options trading of bulk commodities can play its market function and role more effectively, because its participants are more extensive, the market liquidity and market efficiency are higher With the continuous deepening of the reform of grain circulation system in China, the marketization process of bulk agricultural products is speeding up The majority of farmers, a large number of grain and oil management and storage enterprises are facing more and more risks of spot price fluctuation, and the demand for avoiding risks in entering the futures market is becoming stronger and stronger However, due to the restriction of the bank's capital credit policy and the ability, experience, time and energy to enter the futures market, it is difficult to achieve the expected hedging goal by using futures trading It is easier for the agricultural cooperation organization and the grain and oil management and storage enterprises to lock the spot risk through the purchase of options, which has a more reliable guarantee for the protection of farmers' interests and the improvement of farmers' income In addition to providing more convenient hedging tools for producers and operators, 9mw option trading has many positive effects on the development and improvement of futures market and market system, which are mainly reflected in the following aspects: first, option trading is a beneficial supplement to futures market Taking CBOT agricultural futures market as an example, it can develop to today's scale, and has a very important relationship with the development of agricultural options such as corn, soybean and wheat Agricultural options have opened up a new way for traditional agricultural futures trading, further expanded the influence of futures market, and effectively promoted the large-scale growth of agricultural futures trading Secondly, it is helpful to form the complete competition structure of futures market The expansion of the scale of futures market transaction is helpful to restrain the formation of market monopoly and excessive speculation But more importantly, because option trading can attract more hedgers (non cash arbitragers) to enter the futures market, it can not only activate the market, but also restrict monopoly and excessive speculation from the mechanism, so that the futures market can better play its function and function Third, it promotes the functional link between the spot market and the futures market, and promotes the improvement of the variety market system The development experience of the world futures market shows that in order to give full play to the function of price discovery and risk avoidance in the futures market, the introduction of hedgers is very important, because they are the decisive force to realize the market structure balance and restrain excessive speculation Especially for commodity futures, without the participation of hedgers, it is difficult for the market to maintain a healthy and stable development and growth, or even to some extent lose the practical significance of its existence The option trading mechanism can combine the futures market and the spot market organically on the premise of protecting the interests of the hedgers and taking into account the efficiency and justice of the market 9mw in short, options play an important role in the improvement of the market system The timely introduction of bulk agricultural products options trading is of great significance to "improve the grain spot and futures market", protect the interests of farmers, and promote the reform of agricultural related industries 9mw