Current location - Trademark Inquiry Complete Network - Futures platform - Is there a difference between speculating in futures and stocks?
Is there a difference between speculating in futures and stocks?
Stock is a kind of valuable securities, which is a certificate issued by a joint stock limited company to prove the shares held by shareholders. Shares must be listed companies to be issued. The issuance of shares shall be based on the principle of fairness and justice, and each share of the same class shall enjoy the same rights. Once the shares are issued, investors who buy the shares of the company become shareholders of the company. In essence, shares represent shareholders' ownership of a joint stock limited company. With shares, shareholders can receive dividends and bonuses from the company, participate in board meetings, exercise their rights, and bear corresponding responsibilities and risks.

Financial futures is a financial transaction. Secondly, futures have hedging and profit-making functions. Futures trading refers to the trading of standardized futures contracts by both parties in a centralized exchange market through open bidding. A futures contract is a standardized agreement concluded by both parties to a transaction, which stipulates that a certain quantity of a certain commodity will be delivered at the price agreed at the time of transaction at a certain date in the future. The basic tools of financial futures contracts are various financial instruments, such as foreign exchange, bonds, stocks, stock price indexes, etc. Futures is a kind of financial derivatives, which is risky, especially the risk is greater than that of stocks.

The difference between stocks and futures is that stocks are a means of financing for listed stock companies. Financing by issuing stocks, thus expanding the reproduction of enterprises. Futures is an expectation of the future economy, and it is a means to make profits by signing contracts to buy up and buy down. After the futures contract expires, it can be traded in kind or in reverse to offset the responsibilities and obligations entrusted by the contract. This is called liquidation or hedging. In the actual futures market, the proportion of physical delivery due is extremely low, and most of them choose to close their positions.