Transaction mode: spot copper transaction means that investors directly buy and sell actual copper products, and both parties need to face practical problems such as logistics, quality inspection and inventory; Futures copper trading refers to trading through contracts in the futures market. Investors don't need to own the actual copper, just need to hold the corresponding futures contract.
Leverage effect: Futures copper trading usually uses leverage, and investors can control a large trading volume by paying a certain margin. Spot copper trading, on the other hand, has no leverage effect, and investors need to use actual funds to buy copper products.
Price fluctuation: the price in spot copper is mainly affected by practical factors such as supply and demand, production and transportation costs, and the fluctuation is relatively small; The futures copper price is influenced by many factors, such as political events, natural disasters and economic situation. And the price fluctuates greatly.
Transaction costs: spot copper trading requires investors to bear the actual logistics, quality inspection, warehousing and other costs, while futures copper trading only requires investors to pay a certain fee and deposit.
To sum up, spot copper is very different from futures copper. Investors can choose their own trading methods according to their own risk preferences and investment needs. It is suggested that investors should fully understand and learn before trading copper, understand the characteristics and risks of various trading methods, and formulate reasonable trading plans and risk management strategies.