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    Basic Accounting Knowledge: Futures Contracts

    2011/1/28 10:43:00 38

    Accounting Futures Contracts

    A legally binding standardization between the seller and the buyer and the futures exchange.

    Agreement

    It requires a specific location in the future.

    time

    Delivery.

    Usually,

    futures

    The contract has the following characteristics:


    (1) the number and quantity of standardized units have been determined. For example, a treasury bond futures contract stipulated by the Shanghai stock exchange contains 20 thousand yuan, or 20 thousand yuan per paction.


    (2) to formulate standardized commodity quality grades, so that pactions between buyers and sellers can be facilitated without the grading of commodity quality, thus facilitating pactions between buyers and sellers. It is not necessary for the quality grade of goods to facilitate pactions between buyers and sellers.


    (3) provide standardized delivery places;


    (4) a standardized delivery month is stipulated.

    For example, the delivery dates of Shanghai grain and oil exchange, such as japonica rice and soybean, are four delivery months in March, June, September and December.

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