The latter circumstance through evolution led to the development of standard exchange contracts with delivery goods on time and their treatment as independent objects of exchange trade. The main reason and the need for the development of futures trading is that the latter provides the lifting of those restrictions that have trade directly exchange goods. Ripple: the source for more info. Product itself as a material benefit has restrictions for the development of exchange trade. Get rid of them can be achieved through the organization of trade is not itself a commodity, but only the rights to it, ie, futures contracts. Sale of goods at the exchange gives way to the exchange's turnover of futures contracts, whose connection with the physical market is mostly indirect, since only a few percent of total contract ends a real delivery. Indirect communication is that the owners of the contracts are constantly buying and selling them under the influence of changing market conditions on their commercial or other activities.
Futures trade came in the second half of XIX century. Its origin and development related to the fact that it reduced the risk of adverse price fluctuations in the circulation of capital, reduce size of reserve capital required in the event of adverse market conditions, to accelerate repayment of cash advanced capital, reduce trade credit, reduce distribution costs. Trade in futures exchange compared with the exchange of real goods are distinguished mainly fictitious transactions (only a few percent of transactions completed delivery of the goods, and others – pay the difference in prices); mostly indirect link with physical market through hedging, complete unification of all contracts, except for price and delivery time, anonymity of transactions, since they are not registered between a buyer and seller and between them and Clearing House. Trades on futures exchanges are as a commodity and on the currency, equity indices, interest rates, etc. The volume of transactions on the futures exchange, usually many times larger than the actual trade goods. Essential commodities, transactions with which concluded on futures exchanges, are cereals, oilseeds, oils, petroleum and petroleum products, precious and base metals, cotton, sugar, coffee, cocoa, live cattle..