1, different definitions
The futures market is a trading place or field that trades according to the agreement reached and delivers on the scheduled date. Spot market refers to the financial market where buyers and sellers must make delivery within a few trading days after the transaction.
Spot transactions include cash transactions and fixed transactions. Cash transaction refers to the sale of securities on the same day as the transaction date and settlement date. Fixed transaction means that there are several trading days between the trading day and the settlement day, usually within seven days. At present, most transactions in the spot market are fixed transactions.
2. Different counterparties
The direct object of spot trading is the commodity itself, including samples, objects and pricing. The direct object of futures trading is futures contracts, not how many contracts to buy or sell.
3. Different delivery methods
Spot is cash spot, and futures are contract transactions, that is, mutual transfer of contracts. There is a time limit for futures delivery. Before the expiration, it is a contract transaction, but the expiration date is to cash the contract for spot delivery. Therefore, large futures institutions often do both spot and futures, which can be used for hedging and speculation.
Extended data:
Basic functions of futures market
The role of macroeconomics. 1, adjust market supply and demand, and slow down price fluctuations; 2. Provide reference for government macro-control; 3. Promote the international development of domestic economy; 4, contribute to the establishment and perfection of the market economic system.
The role in microeconomics. 1, forming a fair price; 2. Provide the benchmark price of the transaction; 3. Provide leading economic indicators; 4. Avoid commercial risks caused by price fluctuations; 5. Reduce the circulation cost and stabilize the relationship between production and marketing; 6. Attracting speculative capital; 7. Function of rational allocation of resources; 8. Achieve the goal of locking production costs and stabilizing production and operation profits.
References:
Baidu encyclopedia-futures market