What is the futures settlement date? Does Futures Settlement Date Matter?

　　There should be a problem that needs to be dealt with when doing futures trading,that is,the trading day of futures and the settlement day of futures.Many people know the trading day of futures,but not the settlement date of futures.When we are doing futures trading,the time of our different contracts is different.That is,under such circumstances,when we need to trade,we must pay attention to our futures settlement date.When our settlement day comes,we have no way to trade futures.So we have to make new contract replacements before we can make new transactions.So we should understand that the settlement date of futures trading is very important.

　　Especially our commodity futures,when our commodity futures are trading,there will be an agreed delivery date.By this delivery date,our traders must be faced with two choices.The first aspect is to choose to close the position and move on to new trades.The second option is to choose to continue to hold the contract in our hands,and then carry out physical trading transactions.

　　In the process of futures trading,individual investors have no right to maintain their positions until the last trading day.That is to say,most of our investors will close their positions before the settlement date of futures.Then adjust to a new position,and continue to make new transactions in the next contract.

　　Some people will ask,if I don't want to close the position,what will I do if I continue to hold it?Even if you want to continue to hold it,the futures company will forcibly close your position.Because individuals do not have the opportunity to make delivery,we must understand that our transactions are all speculative transactions in the futures market.

　　For spot enterprise companies,they may hope to be able to earn hedging qualifications better through trading.And they can also get more physical goods,so for them,they are qualified to carry out physical delivery.And before they enter the market,they will apply to the exchange,and after their application is approved.Before the settlement of the transaction arrives,they can pull their contract to the designated location to deliver the item.

　　The market will still fluctuate on the settlement day of the futures,and the transaction will be carried out normally.It's just that when the final settlement day comes,the volatility of the market will sometimes be particularly violent,and sometimes it will be relatively flat.But in most of the time,in fact,on the settlement day of the transaction,the fluctuation of the market will be more severe than before.

　　Why does this happen?The main reason is because both long and short sides are fighting fiercely.Everyone hopes to be more beneficial to the contracts they hold,and even a little more price can make them more profitable.After all,the vast majority of those chasing in the market are large spot traders or large investment institutions.They will hold more contract shares than our ordinary investors.Even if the price fluctuates only a little,their profit margins can be huge.Therefore,when the settlement date arrives,most investment institutions or spot traders will work very hard to pursue the balance of prices.

　　The closer the point is reached,the more violent the price volatility will be.Therefore,on this day,many people are used to calling this day the delivery day effect.Because the volatility on this day is particularly large,there are still many people who continue to speculate in it.Of course,all the people here are not our retail investors,but professional investment institutions.

　　When trading in the futures market,all the transactions we make are contracts.For example,we are now in January 2022,and we can trade contracts from January to December in the market.So what are the differences between the different contracts in these months?

　　First of all,let's talk about the contract in January and the contract in February.The time like this is very close to us,which is what we call the near-month contract.Like the December contract or the November