Electronic trading is electronic spot

Electronic trading of bulk commodities is based on commodity spot warehouse receipts (a valuable voucher for transactions) as the transaction subject, and is organized through computer networks for the same goods in different places. Synchronous trading, a trading method with unified market settlement, is a form of market trading that organically combines the tangible market and the intangible market.

Before explaining electronic spot, let me briefly explain to you what spot trading is. For example, if you spend 10,000 yuan to buy ten tons of corn, this transaction is called a spot transaction. From here we can see two shortcomings of spot trading. First, trading in different regions will bring transportation problems. Second, transactions in different regions will lead to untimely information. To this end, the country has launched electronic spot.

In fact, electronic spot trading is also called medium and long-term electronic trading of bulk agricultural products. It is launched by the state to support agriculture and promote the circulation of agricultural products. It uses electronic spot warehouse receipts as the trading unit and is organized by computer networks. The same goods are traded in different places, and the market adopts a unified settlement transaction method. This actually means that the agricultural products in the market are concentrated in certain warehouses, and we use electronic spot warehouse receipts to represent agricultural products of equal value. For example, an electronic spot warehouse receipt of 5,000 yuan for corn is equivalent to 5,000 yuan of corn of the same value. We no longer conduct direct sales of goods, but use spot warehouse receipts for unified transactions, which is more convenient and the information is more timely. The trading time of each agricultural product is limited, usually six months. Ordinary investors do not need the commodity, so they must sell the spot warehouse receipt in their hands before the 10th of the delivery month to obtain price difference. Large merchants, such as enterprises, need these goods, so they will hold the spot warehouse receipt until the 10th of the delivery month, and then they can purchase the goods. Since the prices of agricultural products are mainly affected by climate and supply and demand, prices are easier to grasp, have certain regularity, and have low risks.

Comparison of electronic spot and futures: It sounds like electronic spot is like futures, but electronic spot is better than futures. First, the settlement method is flexible. Electronic spot transactions involve physical commodities, which can be delivered in advance or immediately. At the same time, physical commodities are purchased last in electronic spot transactions, and physical settlement accounts for a large proportion. Futures trade are future commodities, and whether they exist is still unknown. Physical delivery can only be delivered after the contract expires, and the weight and proportion of physical delivery are minimal in futures contract transactions. Second, the transaction risk is small. Electronic spot is developed by the country to support agriculture and promote the circulation of bulk products. The speculative atmosphere is not strong. At the same time, it has a price limit of up to 6%, while futures encourage speculation. And the price range is 200%, so the risk is huge. Third, funds are safer. The margin for electronic spot trading is 20% (you only need to pay 20% of the price for purchase). At the same time, you can invest with less funds. However, in the futures market, the margin level is low (100%). out of 10), which means that the risk is higher, but the returns are also higher, so there are higher requirements for investors' opening funds.

Comparison between electronic spot and stocks

I From the perspective of trading rules, stocks can only be bought up, while electronic spot can be bought up or down. However, bear market investors cannot make money. , does not exist in the electronic spot market.

II In terms of varieties, there are more than a thousand stocks in the domestic stock market, making stock selection difficult; there are fewer agricultural products in the electronic spot market, which is easy to operate.

III Listed companies may be liquidated and disappear due to poor management; spot agricultural products will always exist, and there is a lot of room for appreciation in the future.

IV The stock market is easily controlled by market makers or groups; electronic spot trading adopts the form of settlement at any time, which is difficult for institutions or large investors to manipulate, and the transaction risk is small.

V stock investment has no leverage and is 100% capital investment; electronic spot is a leveraged transaction with strong flexibility and low investment threshold. The daily profit margin of stocks is smaller than that of electronic spot products.

VI From the perspective of capital settlement time, stock investment is T+1. If you buy it on the same day, you can sell it the next day; electronic spot trading is T+0, which can be settled multiple times on the same day and can be locked. profit.

Comparison between electronic spot and gold

Gold funds are remitted overseas, and the funds are relatively unsafe. Electronic spot is subject to the same three-party bank supervision as stocks. Safe and reliable. The leverage ratio of gold is 1:100, which carries huge risks and is not suitable for ordinary investors, while the leverage ratio of electronic spot is 1:5, which has a low investment threshold and is suitable for ordinary investors.

Comparison between electronic spot and futures

Settlement is more flexible. Electronic spot can be settled immediately or at maturity, and physical delivery accounts for a large proportion, but futures can only be settled at maturity, and physical delivery accounts for a small proportion and high risks

The margin for electronic spot is 20% and that for futures is 10%. The risk of futures is much greater. The maximum range of rise and fall for electronic spot is 6%, while for futures it is 200%. This means It is acceptable to the general investment department.

The factors that affect futures price fluctuations are more complicated and difficult to analyze, while agricultural products are mainly affected by climate and supply and demand, which are relatively simple and easy to grasp, and are suitable for novice investors.

In general, the risk of electronic spot trading is lower, and its profitability is stronger than that of stocks. Of course, since the risk is not as high as that of gold and futures, its profitability is smaller than that of gold and futures. Those who speculate in stocks and futures For investors, considering risk and profitability, electronic spot is an ideal investment product. Friends who speculate in stocks and futures may wish to try it. Of course, investors with no investment experience can choose to start with electronic spot because it is simple and has low risk.