The difference between stocks and futures
Stock, that is, the purchase of a company's stock, the certificate given to you by the company; On the other hand, futures is a contract signed by both parties at the current price according to their respective expectations of the future price of the subject matter. If you want to have a deeper understanding of the concept, I recommend you to read these books first and get to know your feelings. These books are very helpful for us to enter the investment market-read "Introduction to Stock Market" for free online.
Now that we understand this concept, let's analyze the difference between the two:
1, subject matter
The subject matter is also the transaction object. The trading object of the vegetable market is vegetables, so vegetables are the subject matter, so they are individual stocks in the stock market. In the futures market, the subject matter is more colorful, such as bulk products (agricultural and sideline products, metals, crude oil) and financial assets (stocks, bonds).
2. Investment direction
The investment direction, in layman's terms, is how you make money. The stock market can only make more money, but once the stock market falls, there is nothing we can do; The futures market is not like this. The futures market is a two-way transaction. Not only can you earn profits by doing more and doing lower, but you can also borrow goods and sell them when the price is high, and then buy them back after the decline to achieve profitability. But no matter what the investment direction, information is definitely the key factor for you to make money or not. It can be said that as long as you have faster and more reliable information channels than others, you are more likely to make a profit in the market. Here, I also prepared a stock market broadcast for you, so that you can get the information that may affect the financial market in time: the stock market barometer, the first-hand information broadcast (link) of the financial market.
3. Trading mechanism
The stock is T+ 1 Buy today and sell tomorrow. At this time, you will ask, what should I do if I buy something expensive today? Can you just watch it fall without any help when it plummets? Haha, in fact, you can dilute the purchase cost of the day through some later methods, continue to follow your sister, and then there will be a special column to teach you how to operate. Back to futures, futures are T+0 transactions, that is, they can be sold after buying.
4. Efficiency of funds
Stocks are traded in full, and how many shares you buy depends on how much money you have, while futures are traded on margin. Even if there are only 6,543,800+sheets, you may buy a futures contract worth 6,543,800+sheets.