Comparison between electronic spot and futures
Delivery is more flexible. Electronic spot can be delivered immediately or at maturity, and the proportion of physical delivery is very large, but futures can only be delivered at maturity, and the proportion of physical delivery is very small (you can't get all the goods you buy if you lose), which is risky.
The margin for electronic spot is 20%, and that for futures is 10%. The risk of futures is much greater. The maximum fluctuation of electronic spot is 6%, and the maximum fluctuation of futures is 200%, which is unacceptable for ordinary investment.
The factors affecting the fluctuation of futures prices are complex 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 suitable for novice investment.
Generally speaking, the risk of electronic spot trading is lower and the profitability is stronger than that of stocks. Of course, because there is no risk of gold, the profitability of futures is less than that of gold and futures. Electronic spot is an ideal investment product for investors who speculate in stocks and futures. Friends who speculate in stocks and futures may wish to try. Of course, investors who have no investment experience can choose electronic spot because it is simple and has little risk.