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What is the difference between spot trading and futures trading?
First, the nature is different.

1. Cash on delivery or barter are common methods in spot transactions.

2. Futures trading is an advanced trading method based on spot trading and forward contract trading. In order to transfer the risk of market price fluctuation, it refers to the form of buying and selling futures contracts in an open competition on commodity exchanges through brokers.

Second, the scope of use is different.

1, spot transactions are generally applicable to the sale of agricultural and sideline products, small wholesale and retail transactions.

2. Futures trading can be a commodity, such as copper or crude oil, a financial instrument, such as foreign exchange and bonds, or a financial indicator, such as three-month interbank offered rate or stock index.

Extended data

Spot trading refers to a trading method in which buyers and sellers deliver physical goods in real time or short term according to the agreed payment method and delivery method. The main differences are:

1. delivery time is different: spot transactions are generally completed immediately or in a short time, while the delivery date of spot electronic transactions is agreed in advance.

2. Different trading objects: the object of spot trading is mainly physical objects, while the object of spot electronic trading is standardized contracts, not contracts.

3. The purpose of trading is different: the purpose of spot trading is to transfer the ownership of goods; The purpose of spot electronic trading is to obtain the price difference or avoid risks.

4. trading places is different: spot trading is random, not limited by trading time, place and object, while these conditions of spot electronic trading are fixed.

5. Different settlement methods: the settlement methods of spot transactions include one-time settlement, cash on delivery or installment payment, while the spot electronic trading market implements the daily settlement system.

Reference: Baidu Encyclopedia-Futures Trading

Baidu encyclopedia-spot