Investigation for the Differences of Futures Trading in China and United States

Abstract

Futures trading is a financial mechanism whose key role is to allow buyers and sellers to speculate on the future prices of commodities and financial instruments. One of the fascinating aspects of this field is that the attitude and enthusiasm for futures trading varies from country to country. The main thrust of this article is focused on discussing the differences in futures trading between China and the United States. The article will explore the historical, cultural, and most importantly, regulatory aspects of the characteristics with the aim of revealing the reasons behind the relatively low enthusiasm for futures trading in China and the high enthusiasm in the United States. These factors mainly encompass the evolution of futures trading, contract types, duration, trading mechanisms, and regulatory structures. The weakness of this paper is that it does not examine a specific futures market or commodity in detail, but only describes the overall trend between countries, which does not form a tight structure.