Now there are many ways of investment, most traders in the choice is a black eye, do not know how to choose these investment products. At the same time, for some high risk and high profit products, such as foreign exchange trading and futures trading, many customers do not know how to choose. Today, I'd like to sort it out for you.
First, the liquidity of capital. The high liquidity is the foreign exchange market with a daily scale of 4 trillion US dollars, which is the largest financial market with the highest capital liquidity in the world. However, the scale of other financial markets is far from that of foreign exchange markets. In the futures market, the daily trading volume is only $30 billion. The foreign exchange market can always be traded at any time.
Second, trading time, the foreign exchange market is a 24-hour open market. It starts from Sydney, Australia at 5:00 p.m., Tokyo, Japan at 7:00 p.m., then London at 2:00 p.m., and New York at 8:00 p.m. For investors, whenever and wherever there is any news, investors will react immediately. Investors can also have a flexible plan for the timing of entry or exit. Compared with the Chicago Mercantile Exchange and Philadelphia exchange, the trading time is limited. The CME is open from 8:00 a.m. to 2:00 p.m. Eastern time. As a result, if important news from London or Tokyo is not released during business hours, the next day's trading will be very chaotic.
Third, the quality and speed of delivery. Each futures market transaction has different trading dates, different prices or different contract contents. Every futures trader has the experience that futures trading usually takes half an hour to complete, but the final trading price is quite different. Although there are electronic transaction support and limited transaction guarantee, the market price list transactions are still very unstable. The exchange market provides stable quotation and real-time trading. Investors can use the real-time market price to trade. Every foreign exchange trader's quotation is executed, that is, as long as investors are willing to trade! If there is no price but no deal!
Fourth, commission fees, bid ask spread is the spread, that is, transaction costs. Due to the lack of transparency in the futures market, the confirmed spread is unreasonable. For the foreign exchange market, investors can judge the actual transaction cost through the transaction price displayed on the trading platform. The spread in the foreign exchange market is much lower than that in the futures market.
The above is the difference between foreign exchange trading and futures trading. In foreign exchange trading and futures trading, many customers have been the most difficult choice for investors. Therefore, we give you a detailed overview of this knowledge, hoping to help you with your trading decisions.