The first difference between foreign exchange and futures: high liquidity.
The daily trading volume of spot foreign exchange market is as high as 1.4 trillion US dollars, making it the largest financial market with the highest liquidity in the world. Compared with the trading volume and foreign exchange market, the scale of other financial markets is much inferior. If you take the futures market with a daily trading volume of only $300 as an example, you will have a clear idea of the degree of liquidity. The funds in the foreign exchange market are always mobile and can be traded or stopped at any time.
The difference between foreign exchange and futures: 24 hours a day.
The foreign exchange market is a 24-hour uninterrupted market. You can enter the market immediately if you want to. Of course, the trading time is five days a week, and it is closed on Saturday and Sunday. The futures market is not so casual, and the time of futures trading is intermittent and very fixed. In this case, people engaged in this industry must choose a good opportunity to trade at a fixed point. Compared with foreign exchange trading, there is a big difference between them, and the time of foreign exchange trading is not fixed, so foreign exchange trading has become a second occupation for many people.
The third difference between foreign exchange and futures: the quality and speed of trading.
Every transaction in the futures market has a different trading date, a different price or a different contract content. Every futures trader has the following experience. A futures transaction often takes half an hour to close, and the final transaction price is bound to be far apart. Although there is the assistance of electronic trading and the guarantee of binding trading, the trading of market price list is still quite unstable. Foreign exchange dealers provide stable quotations and real-time trading, and investors can trade with real-time market quotations, even when the market situation is busiest and trading is impossible. In the futures market, the uncertainty of transaction price is because all orders must be matched through centralized exchanges, which limits the number of traders, the flow of funds and the total transaction amount at the same price. And every quotation of foreign exchange dealers is executed, that is, as long as investors are willing to make a deal! There will be a price but no market!
The fourth difference between foreign exchange and futures: commission-free foreign exchange transactions.
Buying and selling in the futures market, in addition to the price difference, investors must also bear additional commissions or handling fees. All financial commodities have a bid price and a selling price, and the difference between the bid price and the selling price is defined as the price difference, or transaction cost. Until today, because of the lack of transparency, the unreasonable price difference in the futures market is still a fact. Now, investors can judge the depth of the market and the real transaction cost through the real-time display of the buying price and selling price on the online trading platform. The spread of foreign exchange trading is much lower than that of futures trading, especially after-hours trading, because futures investors are easily affected by low liquidity and suffer great losses.