What's the difference between futures and stocks?
Similarity: 1. You can also download software to trade at home after opening an account. 2. It can also realize bank custody of funds and automatic transfer of funds accounts and personal savings accounts. At the same time, you can go to the China Securities Regulatory Commission in charge of the China Futures Margin Monitoring Center to inquire about the funds in your own fund account. Absolutely guarantee the safety of funds. 3. Also use basic analysis methods and technical analysis methods to analyze the price trend. Difference: Variety: There are fewer varieties with active futures, which is convenient for analysis and tracking. There are thousands of stocks, and it is difficult to look at them once, let alone analyze them. Capital: Stocks are traded with full margin, so you can buy as many stocks as you have. Futures are margin trading. With 10% capital, you can do 100% transactions. The capital is enlarged 10 times, and the leverage is very obvious. This means making small bets and making big bets. Trading method: T+ 1 of the stock, with no short-selling mechanism. Stocks can only be long, not short, and it is a one-way transaction. You can only buy stocks before you sell them. Futures is a T+0 transaction, with a short-selling mechanism, which can be traded in both directions. The two-way trading mechanism makes futures trading never enter a bear market. Function: The most striking feature of futures is that it provides a market for spot dealers and distributors to avoid price risks, and the most important function of stocks is financing. Information disclosure: Futures information is mainly about output, consumption and weather in main producing areas, which is reported by professional newspapers with high transparency. The most important thing about stocks is financial statements. Professional price: Futures price is an expectation of future trends, which is restricted by the cost of futures commodities. As the delivery month approaches, the price will tend to be consistent with the spot price. The stock price is often determined by the strength of the dealer's pull, which is closely related to the market trend. Note: Futures are different from stocks. There is only one investment direction for stocks, and futures can be done in both directions. As long as your opening direction is right with the market, you can make a profit. Therefore, like a falling market, stocks are helpless, but futures are as profitable as a falling market. This understanding is the same as rising, so we should pay attention to the difference between them.