Because the transaction is convenient. Historically, futures trading was conducted through oral bidding by traders in the trading hall, but now with the development of technology, most futures trading is completed through electronic trading. When trading, investors input buying and selling orders through the computer system of the futures company, and the matching system of the exchange conducts matching transactions. Futures traders generally buy and sell futures contracts through futures brokerage companies.

2. There are two differences between on-site trading and off-site trading:

1, and their trading places is different:

(1) Trading place with floor trading: stock exchange. A stock exchange is a place with a fixed site and various service facilities (such as quotation board, TV screen, computer, telephone, telex, etc.). ), necessary management and service personnel, and centralized trading of stocks and other securities. The stock trading in this place is called floor trading.

(2) OTC trading places: conducted outside the stock exchange. Off-exchange trading is the symmetry of on-exchange trading.

2, the characteristics of the two are different:

(1) Characteristics of floor trading: centralized and fixed trading places and fixed trading hours; There is a strict organizational management system. In a membership-based exchange, only by obtaining the membership of the exchange can you enter the exchange for securities trading. Members must abide by the rules and regulations of the exchange; The transaction is conducted by open bidding and two-way bidding.

(2) Characteristics of OTC trading: There is no centralized trading place, buyers and sellers are scattered all over the country, and transactions are mainly conducted by telephone and computer systems. The subject matter of the transaction is mainly unlisted securities, and some listed securities are traded over the counter. There are many bonds, including all government bonds and some large corporate bonds, as well as some stocks, especially those of the financial industry and insurance companies. Pricing through negotiation.

Third, the contact between on-site trading and off-site trading:

Financial markets are divided into OTC markets and OTC markets according to trading procedures. The floor market refers to the exchange of various securities. The biggest difference between the on-site market and the off-site market is that the on-site market has standard contracts and is regulated.

However, over-the-counter trading is often only a private agreement between the two parties, and it is precisely because of its opacity that the over-the-counter market has become the target of public criticism in this financial crisis. However, many people in the financial industry believe that OTC trading is still necessary.

Extended data:

Unique characteristics of OTC trading:

1. There are many kinds of securities traded over the counter. Stock exchanges set strict listing conditions for listed securities and only accept the listing of securities that meet the strict conditions, so the number of securities that can be traded on the exchange is relatively small. The types of securities traded over the counter are usually unlisted securities, which do not need to meet the strict listing conditions issued by the centralized market manager, so the scale is huge.

Compared with listed securities, the types of OTC securities are more diverse. It is worth noting that unlisted securities are not inferior securities, and some securities are not traded on the Stock Exchange only because the issuer has not applied for listing.

2. OTC trading is mainly achieved through negotiated pricing. On-floor trading determines the trading price of securities according to the principle of centralized bidding, that is, several sellers and several buyers determine the trading price of each transaction through call auction or continuous bidding according to the rules of time priority and price priority. However, over-the-counter trading is based on the "one-on-one" method to determine the price of securities, and the transaction price depends on the consensus of both parties.

In some cases, the price of securities trading is determined by both parties through repeated consultations; In some cases, although the price of securities is quoted by one party, it can still be adjusted according to the market situation and the acceptance of the counterparty, and there is still the opportunity to negotiate pricing.

3. OTC transactions adopt a special transaction management structure. In foreign countries, OTC trading is an important way of securities trading, and the OTC market is also huge. In order to ensure the healthy development of over-the-counter trading, securities regulators still implement indirect supervision in a unique way.

On the one hand, by delineating the specific scope of over-the-counter trading, we can avoid the phenomenon that "over-the-counter trading is actually on-the-spot trading"; On the other hand, support all kinds of self-regulatory organizations to supervise over-the-counter transactions, and encourage securities companies and various securities associations to supervise over-the-counter transactions. Although this kind of management is relatively loose, it has never given up the supervision of the OTC market, and the OTC market is by no means disorderly.

Baidu encyclopedia-futures trading

Baidu encyclopedia-futures

Baidu encyclopedia-OTC trading

Baidu encyclopedia-floor trading