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What is the difference between foreign exchange margin trading and futures trading?
Foreign exchange margin trading (also known as foreign exchange speculation) refers to signing a contract with a designated investment bank, opening a trust investment account, depositing a sum of money (margin) as a guarantee, and the credit operation limit is set by the (investment) bank (or brokerage firm) (that is, the leverage effect is 20-400 times, and it is illegal to exceed 400 times). Investors can freely buy and sell equivalent spot foreign exchange within the quota, and the gains and losses arising from the operation will be automatically deducted or deposited into the above investment account. Therefore, small investors can obtain a larger trading quota with smaller funds, enjoy the same foreign exchange trading purposes as global capital to avoid risks and create profit opportunities in exchange rate changes. Generally speaking, speculating in foreign exchange is an investment behavior.

Futures trading is an advanced trading method based on spot trading and forward contract trading. In order to transfer the risk of market price fluctuation, it refers to the form of buying and selling futures contracts in an open competition on commodity exchanges through brokers.

Futures, usually futures contracts, are contracts. A standardized contract made by a futures exchange to deliver a certain amount of subject matter at a specific time and place in the future. This subject matter, also known as the underlying asset, can be a commodity, such as copper or crude oil, a financial instrument, such as foreign exchange and bonds, or a financial indicator, such as three-month interbank offered rate or stock index. Futures trading is an inevitable product of the development of market economy to a certain stage.

Futures trading is the activity or behavior of buying and selling futures contracts. Pay attention to the difference. Futures delivery is another concept. Futures delivery is the exchange activity or behavior of the subject matter (basic assets) stipulated in the futures contract on the maturity date. .