The difference between futures silver and spot silver
1 delivery time limit
Futures silver has the property of futures, futures trading has a delivery time limit, and the maturity date must be delivered. If the futures contract held by investors is close to the futures delivery date, investors must close their positions even if they are at a loss. There is no delivery time limit for spot silver, so investors can hold warehouse receipts for a long time and will not be forced to close their positions.
2 trading hours
Futures silver trading time is only 4 hours a day, while spot silver trading time is 24 hours.
3 price formation mechanism
The price formation mechanism of futures silver is the price formed by centralized bidding of all traders in the exchange. The spot silver price is quoted by the silver market maker, and investors decide whether to trade according to the market maker's quotation.
4 Market makers and exchanges
Futures and silver are generally conducted in futures exchanges, and the principle of centralized matching and trading with price priority and time priority is implemented. However, all orders need to be matched through centralized exchanges, which leads to the uncertainty of transaction prices and limits the number of traders at the same price. Spot silver is a delayed delivery mode of spot silver, which is composed of five silver market makers and the next-level gold merchants. There is no exchange that centrally matches transactions.
5 security deposit
The collection standards of trading margin in different stages of futures silver are also different. The time point of entry determines the level of margin ratio. If investors do not pay attention to the additional margin when operating, it is easy to be forced to close their positions. Spot silver deposit is basically fixed, generally 65438 USD +0000 per lot.
6. Is the transaction object specific?
"Whether the trading object is specific" is the biggest difference between futures and spot models. When investors participate in futures trading on the futures exchange, their trading objects are not specific. Any investor who makes a reverse trading declaration on the exchange may be his trading object, and the exchange is the intermediary guarantee link for matching transactions between these non-specific traders. At this point, futures and stock markets are completely similar, both of which are non-specific exchange models.
In the market maker trading mode, the trading object is fixed, and the trading object of investors is the market maker. As long as the market maker quotes the buying and selling price, the investor accepts the price and makes a trading decision, the transaction can be reached according to the prior contract agreement between the two parties. After the transaction is concluded, both parties must perform the contract, which is a transaction behavior under the constraints of normal commercial contracts. The most common trading method of market makers is the foreign exchange quotation trading of banks. The trading object of any foreign exchange trading customer is a bank, and the trading object is specific.
7 Increase restrictions:
Futures silver: according to different futures varieties, the daily price limit ranges from 3% to 15%. Spot silver: no increase limit.
It can be seen that although spot silver and futures silver are both investment varieties of silver, the difference between them is quite big.