In the investment market, stock trading and futures speculation are one of the favorite operations for investors. Although both futures and stocks are one of the financial management methods often used in the investment and financial management market, there are concrete differences between them. So, what's the difference between stock trading and futures trading?

What's the difference between stock trading and futures trading?

Stocks are spot transactions with clear investment objectives. Stock trading is all cash, and the amount of investors' funds determines the trading volume. Simply put, stocks are fully traded, and you can only buy as many stocks as you have. Stock trading is a kind of spot trading. At present, there is no short-selling mechanism in the stock market, and the stock adopts T+ 1 transaction settlement system.

Futures investment belongs to futures trading and is a kind of futures trading. Futures trading implements a margin system, and a certain percentage of margin can be paid to conduct large-scale transactions. Under the premise of controlling risks, investors can have enough time and funds to operate in the face of sudden market changes. Futures trading is largely a virtual transaction, with two trading mechanisms, long and short, and T+0 trading settlement system.

Generally speaking, although the risk control system is stipulated in stock and futures trading, the risk of stock investment is still greater than that of futures because of the system design itself. In addition, the operation of the futures market needs to pay attention to the time factor, and the operation of the stock market is not timely, so investors can hold it for a long time.