What is Treasury futures What are the characteristics of Treasury futures

Because the special futures trading system has attracted the attention of many investors, many people are asking about the knowledge of futures. I will introduce to you one of the government bond futures. What are the characteristics of government bond futures.

Treasury futures

Treasury bond futures refer to the method of derivation of treasury bonds through pre-determined buying and selling prices through organized trading venues and delivery of bonds within a specific time in the future. Treasury futures are a type of financial futures, and they are an advanced financial derivative instrument. It was created in the 1970s in the context of the instability of US financial markets to meet the needs of investors to hedge interest rate risk. US Treasury futures are one of the most actively traded financial futures in the world. On September 6, 2013, government bond futures were officially listed and traded on the China Financial Futures Exchange.

Treasury futures characteristics

1. Treasury futures trading does not involve the transfer of bond ownership, it merely transfers the risk of price changes associated with such ownership.

2. Treasury bond futures transactions must be conducted at designated trading venues. The futures trading market aims at openness and liberalization, and prohibits over-the-counter trading and private hedging.

3. All Treasury futures contracts are standardized contracts. Treasury bond futures trading adopts a margin system and is a leveraged transaction.

4. National debt futures trading implements a daily settlement system without liabilities. 5. Treasury bond futures transactions generally have less physical delivery.

What are the national debt futures and the introduction of the characteristics of national debt futures hope to help everyone invest, if you want to know more about investment knowledge, you can always follow our Followme trading community.