(2) The purpose of the transaction is different. Spot transaction is the transaction of primary currency and primary commodities, and physical delivery and payment settlement are carried out immediately or within a certain period of time. The purpose of futures trading is not to obtain physical objects at maturity, but to avoid price risks or make profits through hedging. ?
(3) Different trading methods. Spot transactions are generally one-on-one negotiations to sign a contract, and the specific content is agreed by both parties. If the contract cannot be fulfilled after signing, it will be resorted to law. Futures trading is conducted in an open and fair manner. One-on-one negotiation (or private hedging) is considered illegal. ?
(4) Different trading places. Spot transactions are generally decentralized. For example, grain and oil, daily industrial products and means of production are all managed by some trading companies, manufacturers and consumers in a decentralized manner. Only some fresh and individual agricultural and sideline products are concentrated in the form of wholesale markets. However, futures trading must be conducted in an open and centralized manner in the exchange according to law, and cannot be traded over the counter. ?
(5) The security system is different. Spot trading is protected by contract law and other laws. If the contract is not honored, it will be destroyed by law or arbitration. In addition to national laws, industry and exchange rules, futures trading mainly depends on the margin system to ensure maturity. ?
(6) The range of goods is different. The varieties of spot trading are all commodities in circulation, while the varieties of futures trading are limited. Mainly agricultural products, petroleum, metal commodities and some primary raw materials and financial products. ?
(7) Different settlement methods. Spot trading is cash on delivery, no matter how long it takes, it is a settlement or several settlements. Due to the implementation of the margin system in futures trading, profits and losses must be settled daily, and the system of marking the market day by day is implemented. The settlement price is calculated according to the transaction price, and the settlement price of CZCE is the weighted average price of all futures contracts of the same variety on that day. The settlement price has the following functions:
(a) Basis for calculating the profit and loss of closing positions and positions; ?
(b) the basis for deciding whether to increase the deposit; ?
(3) The basis for determining the amount of suspension on the next trading day.
Extended data:
The emergence of futures trading provides a place and means for the spot market to avoid price risks. Its main principle is to use futures and spot markets for hedging transactions. In the actual production and operation process, in order to avoid rising costs or falling profits caused by changing commodity prices, futures trading can be used for hedging, that is, buying or selling futures contracts with the same quantity but opposite trading directions in the futures market, so that the gains and losses of futures and spot market transactions can offset each other.
Lock in the production cost or commodity sales price of the enterprise, maintain the established profit and avoid the price risk.
Futures trading can preserve the value because the spot price of a specific commodity is influenced and restricted by the same economic factors, and the price changes of the two are generally in the same direction. Due to the existence of the delivery mechanism, the spot price of futures contracts converges near the delivery period.
The characteristics of futures trading:
1, small and wide. Futures trading only needs to pay 5- 10% performance bond, and it can complete several times or even dozens of times of contract transactions. Due to the leverage effect of the futures trading margin system, it has the characteristics of "small and wide", and traders can use a small amount of funds to conduct large transactions, saving a lot of working capital.
2. Two-way transaction. In the futures market, you can buy first and then sell, or you can sell first and then buy, so the investment method is flexible.
3. Don't worry about performance. All futures transactions are settled through the futures exchange, which becomes the counterparty of any buyer or seller and provides guarantee for each transaction. So traders don't have to worry about the performance of the transaction.
4. Market transparency. Trading information is completely open, and trading is conducted by means of open bidding, so that traders can compete openly under equal conditions.
5. Tight organization and high efficiency. Futures trading is a standardized transaction with fixed trading procedures and rules, which are linked one by one and operate efficiently. A transaction can usually be completed in several situations.
References:
Baidu encyclopedia-futures
Baidu encyclopedia-spot