Spot trading refers to the way in which buyers and sellers trade goods for the purpose of physical delivery. According to the different delivery time, it can be divided into spot spot transaction and forward spot transaction. Spot spot trading is to buy now and sell now, and the money and goods are clear, that is, the seller who owns the goods and is ready to sell them immediately meets the buyer who owns the money but wants to get the goods immediately and makes a deal immediately. Forward spot trading, that is, spot forward contract trading, is a kind of "trading first, then delivery", that is, buyers and sellers first reach a trading contract by signing a contract, and then deliver it at some future time.
The difference between futures trading and spot trading;
1. The direct target of buying and selling is different.
The direct object of spot trading is the commodity itself, including samples, objects and pricing.
The direct object of futures trading is futures contracts, not how many contracts to buy or sell.
2. The purpose of the transaction is different. Spot trading is the transaction of primary currency and primary commodities, that is, obtaining or selling commodities immediately or within a certain period of time.
Right is a direct means to meet the needs of buyers and sellers.
The purpose of general futures trading is not to obtain the due physical objects, but the purpose of hedgers is to transfer the price wind in the spot market through futures trading.
Risk, the purpose of investors is to obtain risk profits from price fluctuations in the futures market.
3. Different trading methods
Spot transactions are generally one-on-one negotiations to sign contracts. The specific content shall be agreed by both parties. If the contract cannot be fulfilled after signing, it will be resorted to law.
Law.
Futures trading is conducted in an open and fair manner. One-on-one negotiation (or private hedging) is considered illegal.
4. Different trading places
Spot trading is generally not limited by trading time, place and object, and it is flexible, convenient and random, and can be used anywhere.
Hand trading.
Futures trading must be conducted in an open and centralized manner in the exchange according to law, and cannot be traded over the counter.
5. Different product ranges
The varieties of spot trading are all commodities in circulation, while the varieties of futures trading are limited. Mainly agricultural products, oil, metal dealers.
Products and some primary raw materials and financial products.
6. Different settlement methods
Spot trading is cash on delivery, no matter how long it takes, it is a settlement or several settlements.
Futures trading adopts a daily debt-free settlement system, and profits and losses must be settled daily. The settlement price is calculated according to the weighted average of transaction prices.