Spot trading is a new investment channel, which will have a huge and stable development prospect under the background of encouraging the development of virtual economy by the state.
The difference between spot and futures:
Spot trading and futures trading are very similar. Both transactions are T+0, and there is a short-selling mechanism, so the transaction is very flexible, unlike stocks that can only be long. The difference between futures and futures lies in: futures is a forward contract, and there is no physical object, so it can be enlarged and traded, so it is very risky; Spot trading where there is real goods, generally 20% margin, trading risk is small; Of course, the risk is small and the return is relatively small.
Main characteristics of spot electronic trading market
(1) Standardization of electronic transaction contract: The standardization of electronic transaction contract means that all the terms except price in the contract are specified in advance and have the characteristics of standardization. Once this standardized electronic transaction contract is registered, it becomes a warehouse receipt.
(2) Two-way transaction: refers to investors buying warehouse receipts at low prices and selling them at high prices, thus making profits; You can also sell at a high price, buy at a low price and make a profit. Trading methods are more flexible and increase trading opportunities.
(3) Hedging mechanism: Hedging mechanism refers to the reverse operation of electronic contracts in order to achieve the purpose of discharging performance responsibilities.
(4) Day-to-day settlement system: investors' accounts are recorded daily to avoid debt disputes and achieve the purpose of controlling risks.
(V) Margin system: Margin system refers to the freezing of appropriate margin for both parties to the transaction, so as to achieve the purpose of ensuring the performance of the contract, and at the same time give full play to the leverage of funds and make full use of them.
(6) T+0 trading system: the contract can be transferred on the same day, and it can be hedged and closed for profit on the same day, making full use of funds, reducing the risks brought by long positions and being flexible in operation.