Comparison between futures and stocks;
Variety: There are fewer varieties with active futures, which is convenient for analysis and tracking. There are more than 1000 or even thousands of stock varieties, which are hard to read, and it is even more difficult to analyze.
Capital: Futures is margin trading. With 5% capital, you can do 100% transaction. The capital is magnified 20 times, and the leverage is very obvious. Stocks are traded on full margin, so you can buy as many stocks as you have.
Participants: Futures participants are manufacturers and distributors who want to avoid price risks, and speculators who are willing to bear price risks and get risky profits. Most of the participants in the stock market are speculators, who are forced to become investors when they are stuck in a high position.
Function: The most striking feature of futures is that it provides a market for spot dealers and distributors to avoid price risks. The most important function of stock is financing, which is often called financing.
Information disclosure: Futures information is mainly about output, consumption and weather in main producing areas, which is reported by professional newspapers with high transparency. The most important thing about stocks is financial statements, and more than 60% of listed companies are fraudulent.
Subject: Futures contracts correspond to fixed commodities such as copper and soybeans. The subject matter of the stock index is the stock price index. Stocks are securities.
Price: The futures price of futures commodities is an expectation of the future trend. As the delivery month approaches, the price will tend to be consistent with the spot price. The stock price is mainly determined by the stock value, and it is also related to the speculation of the banker, which is closely related to the market trend.
Risk: Futures commodities have costs, and excessive deviation of futures prices will be corrected by the market. The risk mainly comes from the participants' reasonable grasp of the position and operation level. Stocks can be delisted, and the share price can also fall very low. Even if you have a high level of operation, it is not easy to see which company is making false accounts.