Han Lingfan: Do you know the difference between spot and futures?

Han Lingfan: Do you know about spot goods andfuturesIs there a difference between them?
The main difference between spot and futures lies in which aspect, and which one is more suitable for investors. Han Lingfan will now tell you which one is more suitable for you. Please take a look at the following points.
　　(1)The direct objects of buying and selling are different. The direct object of spot trading is the commodity itself, with samples, physical goods, and pricing based on the goods. The direct object of futures trading is futures contracts, which refers to the number of hands or contracts bought or sold.
　　(2)The purpose of capital transactions is different. Spot trading is a transaction of first-hand money and first-hand goods, which involves immediate or periodic physical delivery and payment settlement. The purpose of futures trading is not to obtain physical assets at maturity, but to avoid price risk or capital investment profits through hedging.
　　(3)Capital trading methods are different. Spot trading generally involves one-on-one negotiation and signing of a contract, with specific details agreed upon by both parties. If the contract cannot be fulfilled after signing, legal action must be taken. Futures trading is conducted in an open and fair competition manner. One-on-one negotiation transaction(Also known as private hedging)Deemed illegal.
　　(4)Capital trading venues are different. Spot trading is generally conducted in a decentralized manner, such as grain and oil, daily industrial products, and production materials, which are traded in a decentralized manner by some trading companies, manufacturers, and consumer manufacturers. Only some fresh and individual agricultural and sideline products are traded in a centralized manner through wholesale markets. However, futures trading must be publicly and centrally traded within the exchange in accordance with regulations, and over-the-counter trading is not allowed.
　　(5)The protection system is different. Spot trading is protected by laws such as the Contract Law, and if a contract is not fulfilled or broken, it must be resolved through legal or arbitration means. In addition to national laws, industry and exchange rules, futures trading is mainly guaranteed by the margin system to ensure maturity and redemption.
　　(6)The product range is different. The variety of spot trading refers to all commodities that enter circulation, while the variety of futures trading is limited. Mainly agricultural products, oil, metal commodities, as well as some primary raw materials and financial products.
　　(7)The settlement methods are different. Spot capital trading is a cash on delivery settlement, which is settled once or several times regardless of the duration. Futures trading, due to the implementation of a margin system, must settle profits and losses on a daily basis and implement a daily monitoring system. The settlement price is calculated based on the transaction price,CZCEThe settlement price is the weighted average price of all traded futures contracts of the same variety on the same day, and has the above effect.
Above7A dot is enough to indicate which one is better and more suitable for investors, spot and futures. Friends who want to do spot trading can add. To learn more about the market, please search for Han Lingfan on Baidu or visit360Find Han Lingfan's Cocoa account in:2049132832Microfacies numberfam752。