As a special trading method, futures trading has experienced a complex evolution process from spot trading to forward trading and finally to futures trading. It is the result of people's constant pursuit of transaction efficiency and reduction of transaction costs and risks in the process of trade. In the modern developed market economy system, futures market, as an important part, together with spot market and forward market, constitutes a multi-level organic whole, each with its own division of labor and close contact.

Futures trading and forward trading

Trading objects are different. The object of futures trading is standardized contracts, and the object of forward trading is mainly physical objects.

The function is different. One of the main functions of futures trading is to find the price, while the contract in forward trading lacks liquidity, so it does not have the function of finding the price.

Different ways of expression. There are two execution modes of futures trading: physical delivery and hedging liquidation, and the final execution mode of forward trading is physical delivery.

Credit risk is different. Futures trading adopts the daily debt-free settlement system, and the credit risk is very small. It takes a long time from forward trading to final physical delivery. During this period, various changes will take place in the market, and any behavior that is not conducive to performance may appear, and the credit risk is great.

The deposit system is different. Futures trading has a specific margin system, and whether to charge or how much margin to charge for forward trading is privately agreed by both parties.