On-floor trading refers to trading in the exchange of the country where the futures market is located, also known as local trading. This trading method requires a futures dealer or futures broker registered locally to trade, and the traded goods or financial products are delivered by the local exchange. In internal transactions, both parties are traders from the same country or region.
Overseas trading refers to trading in other countries or regions other than the country where the futures market is located. Also known as offshore transactions or cross-border transactions. Foreign transactions are provided by overseas commission merchant or dealers, and traded commodities or financial products are also delivered by exchanges in that country or region. In foreign transactions, both parties may come from different countries or regions.
Internal trading and external trading have their own advantages and risks. Internal transactions are safer and more reliable, but the liquidity of transactions may be limited. On the other hand, foreign transactions have higher liquidity and wider market participants, but there are risks such as exchange rate fluctuations, political risks and regulatory uncertainties.