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What are the advantages and disadvantages of futures compared with foreign exchange?
Foreign exchange:

Advantages:

1, fair

The world's largest and most liquid financial market, with daily trading volume as high as $3 trillion, has no market-making behavior. Real-time market and financial news, transparent and open information.

Step 2 be timely

Trading 24 hours a day; Except Saturday and Sunday, the transaction will not be interrupted.

3. Flexibility

T+0 mechanism, unlimited trading time;

Two-way trading, buying up and selling down can be profitable;

Real-time take profit and stop loss trading, and the income risk can be freely monitored;

Step 4 speculate

Enlarge capital and leverage ratio with small and broad; Unlimited ups and downs; You can do hedging and arbitrage trading.

5. Popularization

Low cost, only charge the spread, that is, one thousandth of the transaction cost;

Not limited by amount and currency, suitable for different types of participants from institutions to individuals;

Free from the influence of time and space, transactions can be conducted through the Internet, telephone and service providers.

Disadvantages:

Nowadays, foreign exchange transactions are generally foreign exchange margin transactions, which amplify the benefits and risks, and will face the risk of huge losses if not handled properly.

Futures:

1. Two-way futures trading: One of the biggest differences between futures trading and the stock market is that futures can be traded in two directions, and futures can be sold short or short. When the price rises, you can buy low and sell high, and when the price falls, you can sell high and make up low. Going long can make money, and shorting can also make money, so there is no bear market in futures. Bear market, the stock market will be depressed, but the futures market remains the same, and the opportunities remain the same.

2. The cost of futures trading is low: countries that trade futures do not collect stamp duty and other taxes, and the only cost is the transaction fee. At present, the procedures of the three domestic exchanges are about two ten thousandths or three ten thousandths, and with the additional fees of brokers, the unilateral handling fee is less than one thousandth of the easy amount. Low cost is the guarantee of success.

3. Leverage of futures trading: The leverage principle is the charm of futures investment. You don't need to pay all the money to trade in the futures market. At present, domestic futures trading only needs to pay 5% margin to get the right to futures trading. Due to the use of margin, the original market has been enlarged ten times. We assume that the daily limit of copper price closes on a certain day (the daily limit in futures is only 3% of the last trading day), and the operation is correct. Our capital profit rate is as high as 60% (3 %÷5%), which is six times the daily limit of the stock market. (You can make money only if you have the opportunity)

4. Double the trading opportunities of "T+0": Futures is a "T+0" transaction, which makes your capital use to the extreme. After grasping the trend, you can close your position at any time. (Convenient access can increase the security of investment)

5. Futures is a zero-sum market but greater than a negative market: futures is a zero-sum market, and the futures market itself does not create profits. In a certain period of time, regardless of the transaction costs of capital entry and exit, the total amount of funds in the futures market remains unchanged, and the profits of market participants come from the losses of another trader. The stock market has entered a bear market, the market price has shrunk dramatically, the dividends are meager, the state and enterprises absorb funds, and there is no short-selling mechanism. The total amount of funds in the stock market will show negative growth for a period of time, and the total profit is less than the loss. (Zero is always greater than a negative number)

Disadvantages: poor risk control and low survival rate.