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What's the difference between stock market and futures market?
Hello! The biggest difference between the stock market and the futures market is that the profit brought by the stock rise is floating profit, which can only be realized by selling stocks, while the futures market implements margin trading, and the profit of futures contracts can directly become the bargaining chip for continuing to add positions, forming the amplification effect of the futures market. The profit-making party can continuously increase its position to expand its profit, while the loss-making party will have less and less available funds on its books with the expansion of losses until the margin is added, so it has to choose to close its position. The force of closing its position will aggravate the change of price direction, and the balance will further favor the profit-making party. This is the so-called reason for forcing positions in futures.

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