What is palm oil futures?

Many varieties of palm oil futures can be introduced to you?

Palm oil futures is the first pure import variety listed in China's futures market, which indicates that the listed varieties in China's futures market are becoming more and more open and international. Palm oil, soybean oil and rapeseed oil are the three major vegetable oils in the domestic consumer market. After palm oil futures were listed on the Dalian Mercantile Exchange in October 2007, a perfect domestic oil futures market was formed with the soybean oil futures listed on January 9 last year and the rapeseed oil futures listed on June 8 this year by the Zhengzhou stock exchange. Palm oil futures price has many influencing factors, such as big price fluctuation, frequent intra day fluctuation, moderate transaction cost, and special status of international oil market leader. It contains many investment and arbitrage opportunities, which is conducive to investors to enrich their investment portfolio. It is an excellent investment variety.
How much is palm oil futures?
At present, there are more than 50 futures varieties in China, among which palm oil futures is one of them. Many friends want to open an account to do palm oil futures. However, Xiaobian suggests that you should understand the basic knowledge before opening an account, such as the amount of palm oil fluctuation and the number of tons of palm oil futures, which will be of great help to your subsequent trading. According to the relevant provisions of Dalian Commodity Exchange on palm oil futures contract, we can know that palm oil is 10 tons in one hand, and the fluctuation point is 20 yuan. Since palm oil fluctuates at 2 yuan per ton, for example, the current price of palm oil futures is 4470 yuan / ton, then it can only rise to 4472 yuan / ton or fall to 4468 yuan / ton. A fluctuation of 20 yuan means that whether palm oil rises to 4472 yuan or drops to 4468 yuan, the profit and loss of palm oil is 20 yuan. And palm oil is 10 tons per hand, which is usually used in the calculation of margin.
For example, the current price of palm oil is 4470 yuan / ton, and the margin rate of palm oil stipulated by the exchange is 5%, and the margin = futures price * trading unit * margin rate, so the margin of palm oil of first hand = 4470 * 10 * 5% = 2235 yuan / hand. Now you should understand how trading units are applied.

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