Futures Trading: The main differences between futures trading and stock trading

1 Stock trading is the transfer of property rights, while futures trading is a risk transfer.

2 Stocks can be acquired through stock exchanges; although futures can also take delivery, most futures investors do not have physical objects as their main purpose.

3 Stocks can be kept for a long time, and futures have monthly restrictions.

4 Stocks must first be bought and sold; futures transactions can be sold first and then bought, or they can be bought first and then sold.

5 The stock will be paid in full amount or deposit, and futures can only be traded with a margin of 3% to 10%.

6 Futures trading price changes are greater than stocks, and the risk is also greater.

7 The daily trading price changes have the highest and lowest limits.

8 In principle, both must be traded through exchanges. Stocks are generally held by securities companies. Futures are traded by futures brokers.

9 Stocks are generally the product of a regional or national economy. Their prices are relatively easy to manipulate; futures are a product of an international economy and their prices are not easily manipulated.

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