Futures trading is the practice of trading commodities. Any institution or market that adopts the trading mechanisms referred to in the preceding paragraph or bears the features of either of the trading mechanisms referred to in the preceding paragraph before the implementation of the present Regulation shall make a rectification within the time limit as provided for by the commerce competent authority of the State Council.
The reverse, where the price of a commodity for future delivery is lower than the expected spot price is known as backwardation Similarly markets are said to be inverted when futures prices are below the current spot price and far-dated futures are priced below near-dated futures.



WTI contracts for August delivery, the U.S. benchmark, 42 cents higher from their Wednesday close in New York and were changing hands at $42.32 per barrel in early European dealing while Brent contracts for September, the global benchmark, were seen 41 cents higher at $44.70 per barrel.
For instance, if you are long a futures contract, you are exposed to the risk of the overall market turning bearish due to an economic crisis no matter how stable you think the asset and industry is. Systemic futures trading risk is one risk that cannot be overcome by diversification and is the market risk that all futures traders will be exposed to unless market neutral futures strategy such as futures arbitrage is used.

Article 81 Where an entity or individual is in violation of the present Regulation, in case of any serious circumstances, this individual, this entity or the directly liable persons of this entity shall be prohibited to enter the futures market as announced by the futures regulatory institution of the State Council.
The act also: limited speculators' trading activities and the sizes of their positions; regulated futures commission merchants; banned options trading on domestic agricultural commodities; and restricted futures trading - designated which commodities were to be traded on which licensed exchanges (see Hieronymus 1977; Leuthold, et al. 1989).
Securities, investment advisory, commodity futures, options on futures and other non-deposit investment products and services are not insured by the FDIC, are not deposits or obligations of, or guaranteed by, ETRADE Bank or ETRADE Savings Bank, and are subject to investment risk, including possible loss of the principal amount invested.

Farmers, ranchers and other food growers along with food producers, petroleum companies who either drill for oil or natural gas or refine these products - or both, financial institutions with enormous holdings in treasuries, equities or currencies, mining interests and their buyers - all these areas of production and distribution employ futures trading spreads from time to time as an important aspect of their businesses.
Article 16 The applicants shall meet the requirements in the Company Law of the People's Republic of China and the following circumstances when applying for the establishment of a futures company: (1) having registered capital of RMB 30 million yuan or more; (2) having directors, supervisors and senior managers with the qualifications for holding their positions and the employees with the futures practicing qualifications; (3) having its articles of association which comply with the laws and administrative regulations; (4) having a continuous profit-making capacity and a good reputation of the main shareholders and actual controllers, and no record of serious violation in the recent three years thereof; (5) having a qualified business site and operation facilities; (6) having sound risk management and internal control systems; (7) Other circumstances as provided for by the futures regulatory institution of the State Council.