1 forex futures trading and foreign exchange forwards are both part of the foreign exchange market.

Forex futures trading and foreign exchange forward transactions have the same object, both of which are foreign exchange.

The principle of forex futures trading and foreign exchange forward trading is the same.

The role of forex futures trading is the same as that of foreign exchange forward transactions, and the main body of these two transactions is to prevent and transfer exchange rate risks, so as to achieve the purpose of preserving value and making profits through speculation.

Whether it is forex futures trading or foreign exchange forward transactions, it is agreed to settle a certain amount of foreign exchange in a certain period of time in the future under certain conditions.

Forex futures trading and foreign exchange forward transactions are derived from international trade, which provides conditions for preventing exchange rate risks.

Difference:

1, different markets. The forward foreign exchange market is a highly standardized trading place, but there is no fixed trading place in the forward foreign exchange market.

2. Different trading methods. In forex futures trading, transactions are conducted by competitive bidding, while the forward foreign exchange market is conducted by telecommunication tools, and the bid price and the bid price are quoted at the same time.

3. The degree of contract specification is different. In forex futures trading, the contract is very standard, which is manifested in the standardization of the amount, delivery date and delivery place.

There are many other differences between them. In daily operation, we must distinguish and choose the way that suits us.

Extended data:

Forward foreign exchange trading is a trading behavior of forward foreign exchange trading in the foreign exchange market, which is symmetrical with spot trading. Forward foreign exchange trading is one of the important trading forms in the foreign exchange market. Usually it is also operated by foreign exchange banks and foreign exchange brokers who operate spot foreign exchange transactions. Forward trading is generally that buyers and sellers first conclude a sales contract, stipulate the quantity, duration and exchange rate of foreign exchange transactions, and then deliver at the exchange rate stipulated in the contract on the agreed date. The delivery period of forward transactions is generally 1 month, 3 months and 6 months, and some of them can reach 1 year. The purpose of this transaction is to avoid or minimize the possible losses caused by exchange rate changes. Speculators also often use forward trading to make profits. Therefore, many countries have certain restrictions on forward transactions.

Forex futures trading is one of the ways of foreign exchange trading. After a foreign exchange transaction is concluded, both the buyer and the seller do not provide the spot, but only provide a certain amount of deposit, and conclude a contract to handle the actual foreign exchange business at the agreed exchange rate in the future. This is one of the main measures to avoid exchange rate risk. The delivery period is generally 1 month, 3 months and 6 months. In foreign trade, exporters hope to expand exports and enhance the international competitiveness of export commodities; For the convenience of financing, importers often sign forward payment contracts. It is unpredictable that the fluctuation of currency exchange rate will cause greater losses to both sides in several periods before the payment is realized. In order to avoid exchange rate risk, importers need to buy foreign exchange futures that expire in advance; In order to avoid exchange rate risk, exporters also need to sell foreign exchange futures that expire in advance; Foreign exchange banks need to balance their positions by buying or selling forward foreign exchange futures to ensure the safety of their business and funds.

References:

Baidu Encyclopedia-forex futures trading? Baidu Encyclopedia-Forward Foreign Exchange Trading