The daily turnover of the foreign exchange market is US$ 4 trillion, making it the largest and most liquid market in the world. The daily turnover of the futures market is only a paltry $30 billion. The futures market cannot be compared with the foreign exchange market because of its relatively limited liquidity.

The foreign exchange market is open 24 hours a day.

At 5 pm on Sunday, the Sydney market opened. The Tokyo market opens at seven o'clock in the evening, and then London opens at three o'clock eastern time. Finally, new york opened at 8: 00 EDT and closed at 4: 00 EDT. Just before the new york market closed, the Sydney market reopened, which is a 24-hour uninterrupted market!

3. Handling fee

Just as electronic communication brokers have become more and more popular and popular in recent years, the direct competition between brokers has become more and more fierce, so that you can get the best quotation and relatively low transaction cost in the futures market.

4. Price certainty

When conducting foreign exchange transactions, you can quickly execute relevant instructions and relatively determine the price under normal market conditions. On the contrary, the prices of futures and stock markets are extremely unstable, making it impossible to conduct real-time trading operations.

Foreign exchange is the creditor's rights held by the monetary management authorities (central bank, monetary management institutions, foreign exchange stabilization fund and Ministry of Finance) in the form of bank deposits, treasury bonds and long-term and short-term government securities. , which can be used when the balance of payments is in deficit.

Futures and spot are completely different. Spot is actually a tradable commodity. Futures are mainly not commodities, but standardized tradable contracts with certain mass products such as cotton, soybeans and oil and financial assets such as stocks and bonds as the targets. Therefore, the subject matter can be commodities (such as gold, crude oil and agricultural products) or financial instruments.

Extended data:

Trading characteristics of futures

1, bidirectional

One of the biggest differences between futures trading and stock market is that futures can be traded in both directions, and futures can be long or short.

2, the cost is low

Futures trading countries do not levy stamp duty and other taxes, and the only cost is the transaction fee.

3. Leverage

Leverage principle is the charm of futures investment. Futures market transactions do not need to pay all the funds, and domestic futures transactions only need to pay 5% margin to obtain future trading rights.

Step 4 double the chance

Futures is a "T+0" transaction, which makes your capital use to the extreme. After grasping the trend, you can close your position at any time. (Convenient access can increase the security of investment)

5, greater than the negative market

Futures is a zero-sum market, and the futures market itself does not create profits. In a certain period of time, regardless of the transaction costs of capital entry and exit, the total amount of funds in the futures market remains unchanged, and the profits of market participants come from the losses of another trader.

References:

Baidu encyclopedia-foreign exchange

References:

Baidu encyclopedia-futures