1 >, the transaction object is different.
The trading target of foreign exchange margin is spot exchange rate, while the trading target of forex futures trading is forward exchange rate. We know that there are interest rate differences between currencies, which are reflected in different forms in foreign exchange margin and foreign exchange futures. In fact, this difference is the main difference between foreign exchange margin and foreign exchange futures.
In the foreign exchange margin, the spread is not reflected in the price, but in the extension of the position, that is, interest will be deducted from the account at 5 o'clock every day in Beijing time, and vice versa.
In foreign exchange futures, the spread is reflected in the price, and there is no concept of day delay. That is, the forward discount of high-interest currency, the discount degree (at interest rate parity) decreases with time and converges to zero when the contract expires.
People often complain that they don't understand the price formation mechanism of foreign exchange futures and dare not participate rashly. In fact, they think this difference is too complicated.
2 > Different quotation methods/counterparties
Most foreign exchange margin transactions are bilateral quotations from market makers. Therefore, the customer's counterparty is a market maker and belongs to over-the-counter trading. The transaction prices given by different companies are not necessarily the same, especially the gap between the highest point/lowest point of the band and the opening on Monday, which has caused many disputes that are difficult to solve.
Forex futures trading is an on-site transaction, and the exchange provides clearing guarantee. Global traders see the same price, so there will be no such problem, and there will be no limit order trading in the middle of the gap, which is very fair. A more important advantage is that during the active trading period, the spread is very small, and the pound is only 1 spread.
3 >, lever ratio is different
The leverage of foreign exchange margin trading is mostly 100, 200 or even 400 times.
The margin of foreign exchange futures is not calculated by multiple, and its charging standard is fixed for a period of time. If comparison is needed, the current euro/dollar conversion is equivalent to more than 50 times, which can fully meet the requirements of professional traders.
In addition, the contract value of foreign exchange futures is different from that of foreign exchange margin. For example, the euro/dollar is set to 1 25,000 euros, which is similar to "1 standard hand" (110,000 euros) in foreign exchange margin.
About opening an account-
First, how to choose a regular foreign futures company: To open an account in a foreign futures market, you must first choose a regular foreign futures company. As we all know, in China, both the stock market and the futures market are supervised by the Securities and Futures Commission. In the United States, American futures are naturally regulated by the Commodity Futures Trading Commission (CFTC) and must be registered members of the American Futures Association (NFA).
2. Having branches in mainland China: As most foreign futures companies are located in the United States, Britain, Hong Kong and other countries and regions, it is extremely inconvenient for mainland friends who are keen on futures investment. However, some large futures companies, such as McMont LLC, have representative offices in Shanghai. Chinese service, professional platform, analysis and guidance, etc. It is the greatest convenience for mainland friends to invest in foreign futures.
Third, choose an easy-to-understand trading platform: friends who have made investments should know that stable profits cannot be separated from an easy-to-understand and professional operating platform. Therefore, if you invest in foreign futures, you must choose a platform with the above conditions, so that you can feel more at ease in the future.
Fourth, understand the varieties and margin requirements of foreign exchange futures: Foreign exchange futures, like foreign exchange, have multiple currency varieties, including US dollar index, British pound, Australian dollar and Japanese yen. However, the margin of each variety is different, so when choosing a variety, you should also consider how much you invest to place an order.
After knowing the above information, you can open an account in a futures company. The requirements for opening accounts of futures companies are basically the same. For example, McMont Company of the United States needs the following steps: 1, a copy of the front and back of the certificate; 2. Prepare customer agreement, futures risk statement, W-8 form, etc. , and make bank remittance; 3. You can operate after receiving the payment.