Research About The Strategy Of Chinese Enterprises To Participate In The Copper Futures

Futures industry develops very quickly in our country, a beneficial to the people’s livelihood commodity strategy and commodity futures has been international standards. In2008October since the outbreak of the financial crisis, the commodity price fluctuation up and down, bring tremendous damage for the real economy, a large number of enterprises in our country suffered heavy losses. If the enterprise can make full use of the futures market for hedging operations, the futures market will play a positive role for the long-term, healthy, stable development of the enterprises. This paper studies the enterprise how to use the futures market actively, futures market have the functions of price discovery and hedging, the enterprises can use these functions to avoid price risks, lock-in costs and to make profits.At first, this paper reviews the development process of the futures market in China, and then introduced the present situation and the existence questions in our futures market, the necessary and the significance of the enterprises participate in the futures market. Then mainly aims at the enterprise participates in the futures market trading strategy, enterprise for the purpose of hedging and arbitrage trading strategy in the futures market. In hedging, the main analysis of hedging principle, types and methods of operation, as well as the different types of enterprises to participate in futures hedging needs attention, in the arbitrage strategy of the main cross term arbitraging and inter market arbitrage analysis and empirical.Finally, in the arbitrage mainly introduces the bull market arbitrage, bear market arbitrage and arbitrage of butterfly. Then mainly analysis and empirical the inter temporal arbitrage strategies and the cross-market arbitrage. Analysis the arbitrage activities of the investors, mainly describes the main arbitrage theory, introduce the intertemporal arbitrage model and cross-market arbitrage model, the main objective of the simple spread arbitrage model in the analysis of inter temporal arbitrage,introduce the intertemporal arbitrage model, and apply Shanghai copper market evidence, describes the use of copper and London copper market arbitrage activities, cross-market implementation of the arbitrage strategy, and use historical data to validate cross-market arbitrage.