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What is the main difference between the futures market and the securities market?
Futures market and securities market

The futures market is a market for buying and selling futures contracts, which are essentially representative symbols of future commodities, so the futures market and commodity market are intrinsically related. However, as far as the purchase and sale of physical goods is converted into the purchase and sale of contracts, futures contracts are externally manifested as securities of related goods, similar to the securities market. Stocks and bonds circulating in the securities market can be said to be standardized contracts of ownership of joint stock limited companies and standardized contracts of creditor's rights and debts of bond issuers. The stocks, bonds and futures contracts that people buy and sell are all investment certificates. However, there are several important differences between the futures market and the securities market.

(A) the basic economic functions are different

The basic functions of the securities market are resource allocation and risk pricing; The basic function of futures market is to avoid risks and price discovery.

(2) The purpose of the transaction is different.

The purpose of securities trading is to obtain interest, dividends and other income and capital gains. The purpose of futures trading is to avoid the price risk in the spot market or gain speculative profits.

(C) the market structure is different

The securities market is divided into primary market (issuance market) and secondary market (circulation market); The futures market does not distinguish between primary market and secondary market.

(4) the provisions of the deposit are different.

Securities are generally traded in cash, and sufficient funds must be paid; Futures trading only needs to pay a certain proportion of the value of futures contracts.