Many customers will hesitate repeatedly when choosing investment methods, and don't know how to choose. They feel that each has its own advantages. This small series regards foreign exchange as the most important investment method and compares it with the traditional futures market. What's the difference between foreign exchange trading and futures trading in Bian Xiao today?

1. Liquidity of funds

There is as much as $4 trillion in foreign exchange market every day, which is the largest financial market with the highest liquidity in the world, while the scale of other financial markets is far from that of the foreign exchange market. In the futures market, the daily trading volume is only $30 billion. The foreign exchange market can be traded at any time.

high fluidity

2. Trading time

The foreign exchange market is a 24-hour uninterrupted market. Foreign exchange trading started in Sydney, Australia at 5pm EDT on Sunday, then in Tokyo, Japan at 7am, then in London, England at 2am and finally in new york, USA at 8am. For investors, whenever and wherever there is any news, investors will respond immediately. Investors can also have a flexible plan for the timing of entry or exit.

Compared with American forward foreign exchange market, such as Chicago Mercantile Exchange or Philadelphia Stock Exchange, there are some restrictions on trading time. The Chicago Mercantile Exchange is open from 8:00 a.m. to 2:00 p.m. EST. Therefore, if the important news of London or Tokyo is not released during business hours, the next day's transaction will be very chaotic.

3. Quality and speed of delivery

Every futures market transaction has different trading date, different price or different contract contents. Every futures trader has the following experience: a futures transaction usually takes half an hour to complete, but the final transaction price is quite different. Although there is the guarantee of electronic trading and restricted trading, the trading of market price list is still very unstable. The foreign exchange market provides stable quotations and real-time transactions, and investors can make use of real-time market prices to conduct transactions. Every foreign exchange dealer's quotation is executed, that is, as long as investors are willing to clinch a deal! There is no market at a price!

4. Commission problem

The difference between the purchase price and the purchase price is the price difference, which is the transaction cost. Due to the lack of transparency in the futures market, the recognized price difference is an unreasonable fact. For the foreign exchange market, investors can judge the real transaction cost by the transaction price displayed on the trading platform. The spread in the foreign exchange market is much lower than that in futures.