The difference between futures and foreign exchange
1, liquidity
The foreign exchange market is currently the largest financial market in the world, with a daily trading volume of US$ 4 trillion. Comparatively speaking, the trading volume of the futures market is much smaller, and the liquidity of the foreign exchange market is stronger than that of the futures market.
2. Trading time
The foreign exchange market is an international market because there is a time difference between different regions. When the market in one area is closed, the market in another area may follow the opening, or even have multiple overlapping opening periods, thus forming a 24-hour trading mechanism. This also requires investors involved in foreign exchange transactions to respond to market news in a timely manner.
The domestic futures market also has night trading hours, but the trading volume is relatively small. There is no night trading on the trading day before the legal holidays of the previous issue, Zheng Stock Exchange and Dashang Exchange.
3. Transaction costs
Both foreign exchange trading and futures trading need to pay a certain commission or handling fee. Futures trading fees are generally collected manually or according to a certain proportion of the transaction amount. Relatively speaking, the cost of futures trading is higher than that of foreign exchange trading.