As a financial derivative, futures have the advantages of leverage, small and large after paying a certain percentage of margin, and the flexibility of margin is also strong. What's the difference between futures and foreign exchange?

the difference between futures and foreign exchange

1. Liquidity

The foreign exchange market is the largest financial market in the world at present, with a daily transaction volume of 4 trillion US dollars. 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 belongs to an international market, because there is time difference in different regions. When the market in one region is closed, the market in another region may be opened immediately, 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.

There are also night trading hours in the domestic futures market, but the trading volume is relatively small. There is no night trading on the trading day before the legal holidays in the previous issue, the Zheng Stock Exchange and the Dashang Exchange.

3. Transaction fees

Both foreign exchange transactions and futures transactions need to pay a certain commission or handling fee. Futures trading fees are generally collected by hand or by a certain proportion of the transaction amount. Relatively speaking, the cost of futures trading is higher than that of foreign exchange trading.