1 thought on “The difference between futures transactions and spot transactions”
Trevor
The differences between futures and spot transactions are: 1. Different objects of transactions; 2. Different purposes of transactions; 3. Different methods of transaction; 4. Different transaction procedures; r; r; r; r; r; r; r; r; r; r; r; r; n5. The guarantee system is different; 6. Different trading venues; 7. Different settlement methods; 8. Different units of transactions, etc. The financial tool for futures is relative to the spot. In the spot trading, the two parties to the transaction shall immediately perform the delivery in accordance with the contract after the trading conditions are reached. The financial tool, which is relative to the spot. Futures transactions are delivered by the seller or short price at the price agreed on the delivery date to deliver specific quantitative and quality goods to the buyer or multi -headed, that is, the transaction behavior of "buying and selling first, then delivery". Detable, the difference between futures and spot transactions is as follows: 1. The objects of the transaction are different. The scope of spot transactions includes all products, and the object of futures transactions is a standardized contract formulated by the exchange. The terms of the contract, such as the number of goods, the quality of the product, the product quality, the margin ratio, the place of delivery, and the delivery method and the transaction method are standardized. The only price in the contract is a free price formed through market bidding transactions. 2. The purpose of transaction is different. Spot transactions are first -hand money and first -hand transactions. In a certain period of time, physical settlement and payment settlement. The purpose of futures transactions is not to obtain the real thing in the expiration, the purpose is to transfer the price risk or make speculation. 3. The transaction method is different. Spot transactions are generally signed by one -to -one negotiations. The specific content is agreed by both parties. After the contract is signed, it cannot be cashed, and it must be resorted to law. Futures transactions are traded in an open and fair competition. One -to -one negotiation transactions (or private hedging) are considered illegal. 4. Different transaction procedures. In the spot transaction, buy a house with goods to sell, and buyers need to pay cash to buy. This is the trading process for spot trading. The futures transaction can turn the spot buying and selling procedures. Even if there are no products, it can be sold first. It can be bought without a product. 5. The guarantee system is different. The spot transactions include laws such as the Contract Law. If the contract is not fulfilled, it must be resolved by law or arbitration when the contract is destroyed. In addition to the national laws and industries and exchange rules of futures transactions, it is mainly guaranteed by the margin system to ensure that the expiration of the expiration (of course, there is also a situation that the deposit cannot be paid in full. This situation is called "piercing warehouse". At time, law or arbitration is also needed). 6. Different trading venues. Spot transactions are generally scattered, such as grain and oil, daily industrial products, and production materials are decentralized by some trading companies, manufacturers, and consumer manufacturers. Essence However, futures transactions must be disclosed and concentrated in accordance with regulations in the exchange, and external transactions cannot be performed. 7. The settlement method is different. Spot capital transactions are clear -to -money, no matter how long it is, it is once or several times. Due to the implementation of the deposit system, the futures transaction must settle the daily profit and loss and implement the day -to -day system. 8. Different transactions. The smallest trading unit in the futures market is hand. Generally, 10 tons per hand, that is, the smallest trading unit of the futures market is 10 tons. Relatively speaking, the threshold for entering The trading unit is 1 kg, and the entry threshold is relatively low.
The differences between futures and spot transactions are:
1. Different objects of transactions;
2. Different purposes of transactions;
3. Different methods of transaction;
4. Different transaction procedures; r; r; r; r; r; r; r; r; r; r; r; r; n5. The guarantee system is different;
6. Different trading venues;
7. Different settlement methods;
8. Different units of transactions, etc. The financial tool for futures is relative to the spot.
In the spot trading, the two parties to the transaction shall immediately perform the delivery in accordance with the contract after the trading conditions are reached.
The financial tool, which is relative to the spot. Futures transactions are delivered by the seller or short price at the price agreed on the delivery date to deliver specific quantitative and quality goods to the buyer or multi -headed, that is, the transaction behavior of "buying and selling first, then delivery".
Detable, the difference between futures and spot transactions is as follows:
1. The objects of the transaction are different. The scope of spot transactions includes all products, and the object of futures transactions is a standardized contract formulated by the exchange. The terms of the contract, such as the number of goods, the quality of the product, the product quality, the margin ratio, the place of delivery, and the delivery method and the transaction method are standardized. The only price in the contract is a free price formed through market bidding transactions.
2. The purpose of transaction is different. Spot transactions are first -hand money and first -hand transactions. In a certain period of time, physical settlement and payment settlement. The purpose of futures transactions is not to obtain the real thing in the expiration, the purpose is to transfer the price risk or make speculation.
3. The transaction method is different. Spot transactions are generally signed by one -to -one negotiations. The specific content is agreed by both parties. After the contract is signed, it cannot be cashed, and it must be resorted to law. Futures transactions are traded in an open and fair competition. One -to -one negotiation transactions (or private hedging) are considered illegal.
4. Different transaction procedures. In the spot transaction, buy a house with goods to sell, and buyers need to pay cash to buy. This is the trading process for spot trading. The futures transaction can turn the spot buying and selling procedures. Even if there are no products, it can be sold first. It can be bought without a product.
5. The guarantee system is different. The spot transactions include laws such as the Contract Law. If the contract is not fulfilled, it must be resolved by law or arbitration when the contract is destroyed. In addition to the national laws and industries and exchange rules of futures transactions, it is mainly guaranteed by the margin system to ensure that the expiration of the expiration (of course, there is also a situation that the deposit cannot be paid in full. This situation is called "piercing warehouse". At time, law or arbitration is also needed).
6. Different trading venues. Spot transactions are generally scattered, such as grain and oil, daily industrial products, and production materials are decentralized by some trading companies, manufacturers, and consumer manufacturers. Essence However, futures transactions must be disclosed and concentrated in accordance with regulations in the exchange, and external transactions cannot be performed.
7. The settlement method is different. Spot capital transactions are clear -to -money, no matter how long it is, it is once or several times. Due to the implementation of the deposit system, the futures transaction must settle the daily profit and loss and implement the day -to -day system.
8. Different transactions. The smallest trading unit in the futures market is hand. Generally, 10 tons per hand, that is, the smallest trading unit of the futures market is 10 tons. Relatively speaking, the threshold for entering The trading unit is 1 kg, and the entry threshold is relatively low.