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The difference between foreign exchange futures and foreign exchange margin trading

Usually, speculators always confuse rebateforex forex rebateforexfee with ForexRapidRebate rebateforexbroker cashback forex Nowadays, the more popular way of forex trading Forex Rapid Rebate a spot foreign exchange margin trading, which has some common properties with futures, but does not belong to the futures category Futures, as the name suggests, are a kind of goods with a deadline, that is, the subject of the transaction at some point in the future, the trader must use The second characteristic of futures is that they are fixed contracts, i.e., all contractual elements such as quantity and quality are fixed, and the only variable item in the contract is the price. Usually we understand the advance payment or deposit, in the futures market, margin is an economic guarantee that the trader has the ability to bear the risk of market price fluctuations Margin foreign exchange is also called margin foreign exchange or margin foreign exchange, the word margin from Hong Kong, the English for Margin, meaning a small amount, that is, the meaning of the margin Margin foreign exchange trading and futures are the same thing is fixed contracts and margin system, but this definitely does not mean that margin foreign exchange is the same as the futures. But this definitely does not mean that margin forex is futures forex (futures forex is another kind of trading), because she does not have the essential characteristics of futures: period to be precise, margin forex trading should be called spot forex margin trading Margin forex trading and futures there is a very huge difference is that futures trading is established by the futures exchange, that is, all traders, whether they are speculators or The margin foreign exchange is different, it does not have a fixed exchange, is through the banks between the transaction, the so-called foreign exchange brokerage company, but is an intermediary This difference seems to be of little significance, but can directly affect the speculators trading behavior: futures varieties at any time, the exchange offer is the only; and foreign exchange trading in Different banks or brokerage firms may give different quotes to their clients, and these quotes, although not very different, are enough to have an impact on the trader One, most banks or brokerage firms are using Reuters or Associated Press quotes as the trading price, with slight variations when the market changes dramatically Margin foreign exchange contracts are generally worth about $100,000, or the equivalent in other currencies, for example, £62,500 for the British pound, and ¥6,500 for the Japanese yen. For example, the British pound is 62,500 pounds, the Japanese yen is 12,500,000 yuan, the transaction margin is generally 0.5% to 10%, that is, between $ 500 to $ 10,000, depending on whether the bank or brokerage company differs brokerage company requirements are relatively low, some brokerage companies may also split the contract Margin foreign exchange trading market analysis and trading strategies, and stocks, futures is not fundamentally different, the main difference is the capital management The difference lies in the capital management Due to the high leverage of margin forex trading, even if the trader is correct in the direction, if the use of funds is not reasonable, it is possible that the small random fluctuations in prices and be cleaned out of the exchange rate in the short term, such as a month or two, price fluctuations of more than 10% is often the case, which is not surprising for the full amount of the transaction, but for 1%, or even 0.5% Margin trading is 10 times to 200 times the lure of profits, it is no wonder that many traders are attracted to it The foreign exchange market is the most risky market this market created Soros, also created Lisson; is the most exciting market every minute someone developed, also someone over; is the most fair market your intelligence directly on the capital increase or decrease, no one interferes with it can quickly make It can easily make you rich, and even addicted to trading, but in any case, if you do not have a wealth of experience in trading, please do not participate on a large scale: less than three years of experience in futures trading or less than five years of experience in stock trading, in the foreign exchange market is called a novice

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