There are more than 4,000 stocks and more than 80 futures varieties. At this point, there are more choices for stocks than futures;
Stocks correspond to listed companies, while futures correspond to The ones are commodities, such as corn futures, rebar futures, apple futures, egg futures, etc. They are all encountered in our daily life and are quite down-to-earth!
Stocks are traded on T+1. If you buy them today, you can sell them tomorrow. Futures are traded on T+0. You can buy and sell at any time, so you are flexible!
Futures are leveraged transactions, but stocks are not! For example, you need 20,000 yuan to buy a 20,000 yuan stock, but you can buy a 20,000 yuan futures contract with 2,000 yuan;
Futures trading has expiration date restrictions, but stocks do not! If you buy a stock and it goes down, you can keep it forever. As long as the stock is not delisted, theoretically you can hold it forever! But futures are different. Futures have expiration date restrictions. For example, the 2105 contract expires in May 2021. Generally, retail investors will have to change the contract at the end of April. If they do not change, they will be liquidated by the futures company. We will discuss it soon. There is no room for it!
If the stock loses money, just leave it alone if you don’t want to cut off the meat. If you lose money in futures, once the available funds are negative, you must pay attention to replenishing the margin in time, otherwise you may also be liquidated! The author shares a good stock leverage platform, Yaoxin Technology, with real trading and no capital threshold.
In stocks, you can bet on the trend, but in many cases with futures, even if the trend is correct, the position will be forcibly liquidated due to margin issues! Therefore, futures are riskier than stocks because of the margin, debt-free system and contract period system!
Of course, futures are not without merit! The biggest advantage is that trading is flexible. If you make money, you can close your position in time to keep the profit. If you find that the market is wrong, you can also get out in time to prevent further losses! But these are all based on personal superb trading technology!
So there are people who speculate in stocks and futures. The key is that you carefully consider your own risk tolerance!