Both foreign exchange and futures belong to a way of investment and financial management, but there are still great differences between them because of different investment types. Mainly reflected in the differences in trading places, contract restrictions, investors and so on. Here is a detailed introduction to the difference between foreign exchange and futures.

What's the difference between foreign exchange and futures?

1 Different trading places: foreign exchange is traded through banks or market makers, and there is a gap between buying and selling; Futures are traded directly through the exchange.

2 Contract restrictions are different: foreign exchange contracts have no delivery date, but inter-bank interest needs to be paid; Futures trading contracts are standard contracts under the IMM settlement system, with monthly contracts, but the monthly contracts in March, June, September and 12 are still the main contracts.

Different investors: foreign exchange is more a transaction between banks, market makers and speculators; Futures occur more between foreign trade industries and companies, and individual investors only account for 5% of the market.

4. Security: the laws and regulations on foreign exchange supervision are not perfect and risky; Futures belongs to the futures industry, which is regulated by various countries and has high transaction security.