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What's the difference between forex futures trading and forward foreign exchange trading?
(1) The purpose of the transaction is different: forex futures trading has two purposes, one is to avoid foreign exchange risks, such as hedging; The other category is speculation in foreign exchange for profiteering, such as speculators. The purpose of engaging in forward foreign exchange transactions is mainly to avoid foreign exchange risks.

(2) Traders and their relationships are different: Participants in forex futures trading can be banks, other financial institutions, companies, governments and individuals. As long as the margin is paid according to regulations, they can all go through economic banks with membership in futures exchanges or enterprises with good relations and good credit with banks.

(3) Different trading instruments: foreign exchange futures contracts are traded in the forward foreign exchange market, and forward foreign exchange contracts are traded in the forward foreign exchange market. The former is a standardized contract, and the transaction amount is expressed by the number of contracts. The minimum transaction amount is one contract, and the maximum transaction amount can be multiple contracts. The amount of each contract has different provisions in different currencies. The foreign exchange forward contract has no fixed specifications, and the details of the contract are decided by both parties.

Different trading institutions: forex futures trading mainly trades on the futures exchange through open bidding. Basically, tangible transactions are intangible markets between banks, between banks and brokers, and between banks and customers through telecommunications, that is, the so-called OTC market.

(5) The trading rules are different: forex futures trading adopts the margin system, and every day's transactions are cleared through the clearing house. Surplus can be used to withdraw excess cash, while deficit needs to pay margin. Forward foreign exchange transactions do not require margin, and both parties to the transaction only make settlement when they are due for delivery.

(VI) Different trading results: the forward foreign exchange market can be used for hedging or speculation, and futures trading itself also provides such conditions.

(VII) Different delivery dates: foreign currency futures contracts stipulate that the contract expiration date is Wednesday of the third week of the delivery month (the delivery months of different varieties are completely different, and the delivery months of foreign currency futures are generally March, June, September and 65438+February each year). There is no fixed delivery date for forward foreign exchange transactions, and customers can choose freely according to their needs. In addition, for the transfer of contracts, foreign exchange futures contracts are transferable, while forward foreign exchange contracts are non-transferable and have weak liquidity.