(1) Main differences between futures trading and spot trading

Futures trading does not require immediate delivery, but it is agreed in the form of a contract to deliver at an agreed price and quantity at a certain time in the future. In addition, spot transactions can only be concluded with the consent of both parties, and generally they can only be bought first and then sold; Futures trading can only be carried out in standard contracts, which can be sold first and then bought.

(2) Futures trading and forward trading.

The only similarity between the two is that they do not require immediate delivery, or agree in the form of a contract to deliver the goods at the agreed price and quantity at a certain time in the future. In addition, they have many essential differences, mainly in:

1) The relationship and credit risk between the two parties are different.

The two parties to a forward transaction directly sign a forward contract, which has a contractual liability relationship. After the contract is signed, both parties must strictly perform the contract. During the contract period, if the market situation develops towards a party that is not conducive to forward trading, then this party cannot default. However, if one party to the forward transaction has insufficient bonus or an accident, it may be difficult to perform the contract, so there is credit risk.

Futures trading is not like this. The object of futures trading is not a concrete object, but a unified "standard contract", that is, futures contract. After the transaction is completed, the ownership of the goods has not really transferred. During the contract period, either party to the transaction can transfer the contract in time without the consent of others. Performance can be achieved by physical delivery or hedging futures contracts, so there is no credit risk.

2) The standardization of transaction contracts is different.

The variety, quantity, delivery date, delivery place and delivery procedure of forward transactions are decided by both parties. Futures trading, on the other hand, is a standardized contract transaction, with standardized trading varieties, trading quantities, delivery locations, deposits and delivery procedures.

3) Different trading methods

Futures trading is conducted in the futures exchange, and buyers and sellers entrust brokers to bid openly.

Forward trading is an over-the-counter transaction, and both parties to the transaction can directly contact the transaction.

4) Different settlement methods

Both parties to futures trading must pay the deposit and implement the daily settlement system. Every day, the price difference should be settled through the clearing house according to the closing price of the day.

Forward transactions do not need to pay a deposit, and they will be settled in one delivery at maturity.

5) The actual delivery volume is different.

Before the expiration of the contract, both parties to futures trading can conduct opposite transactions at any time to end their responsibilities by "hedging" or "liquidation", so the actual delivery of futures trading may not necessarily occur. According to statistics, in a perfect futures market, the actual delivery volume is less than 1%.

On the other hand, forward transactions must be actually delivered at maturity.