What is the difference between spot and traditional trade Which expert can help me explain Thank you Waiting online

Spot continuous trading mode has changed the traditional commodity pricing, trade circulation and logistics mode, is a great optimization and reform of the traditional spot trading of commodities, through commodity producers, consumers and operators in the exchange of direct trading docking, reducing the commodity circulation links, reducing the trade cost, and improving the logistics allocation efficiency.

Before the 21st century, trade was dominated by traditional trade, which took the form of direct meetings between buyers and sellers to agree on the purchase and sale of commodities, and then to close the deal, with one hand delivering the money and the other hand delivering the goods. Traditional trade in bulk commodities trading is mostly carried out in the form of contracts, buyers and sellers according to the content of the signed contract in the future time for commodity trading. It has the following shortcomings:

(1) price formation is not standardized, the risk can not be transferred. As the contract price signing is based on the supply and demand at the time and other factors, and the implementation of the contract in the market price changes are inevitable, in favor of one party is bound to be unfavorable to the other party. At the same time, the formation of the price is also largely subject to geographical restrictions, it is difficult to form a fair price.

(2) credit risk. The inevitability of price risk affects the validity of contract execution, and credit risk is unavoidable in this case.

(3) buyers and sellers are few, it is difficult to form a centralized market, buyers and sellers individually negotiated bargaining to reach an agreement, negotiation skills and skills mastery of the number of the formation of the price is extremely influential.

(4) The contract standardization is low. Every contract to repeat the search for customers, inquiries, preliminary negotiations, signing a series of links, are to be on the varieties of quality, time, transportation and other factors to argue, for bulk traders, this signing and implementation are very complex, the transaction costs increased accordingly.

With the emergence of the Internet, the world has slowly become a global village, built on the basis of information technology spot electronic trading on the stage of the new economy. Spot electronic trading (also known as electronic trading of commodities, or spot warehouse receipts trading) is a spot warehouse receipts for the subject matter of the transaction, the use of computer networks for the centralized bidding and buying, a unified aggregation of the transaction, a unified settlement of payments, price quotes real-time display of the trading mode. Its essence is the spot commodity e-commerce. "Commodity electronic trading norms" on the bulk of commodities to make clear provisions: can enter circulation, but not retail links, with commodity attributes for industrial and agricultural production and consumption of large quantities of material commodities used to buy and sell.

Spot warehouse receipts is the owner of the goods will be delivered to the fixed-point warehouse, by the market to the owner of the goods issued on behalf of the ownership of a certificate of goods. Spot warehouse receipts registered by the market, you can enter the spot trading market trading system through the Internet for trading. Spot warehouse receipts can be freely transferred in the market, sale and purchase, but also for spot physical settlement. Spot trading is actually a standardized warehouse receipt transaction.

Spot trading is the use of the network as a tool to the mode of e-commerce transactions, buyers and sellers do not meet to the electronic trading market as a trading platform, the national government for the referee; is a combination of online and offline, real and virtual combination of the traditional economy and the network economy combined with a win-win model, fully solve the spot commodity trading of the source of the residence, the source of the customer, online settlement, The trading form of logistics and distribution and many other difficult problems.

Two, the main features of the spot electronic trading market

(a) the standardization of electronic trading contracts: the standardization of electronic trading contracts refers to the price in addition to all other terms of the contract are pre-specified, with standardized features. This standardized electronic trading contract becomes a warehouse receipt once it is registered.

(ii) two-way trading: refers to investors can buy warehouse receipts through the low price, the high price of selling profits; can also be sold at a high price, the low price of buying profits. Trading is more flexible and increases trading opportunities.

(iii) Hedging mechanism: Hedging mechanism refers to the electronic contract to take the opposite direction of the operation, to achieve the purpose of the discharge of the performance responsibility.

(iv) Same-day settlement system: daily accounting of investor accounts to avoid debt disputes and achieve the purpose of risk control.

(E) margin system: the margin system refers to the trading parties to freeze the appropriate margin to achieve the purpose of guaranteeing contract performance, while playing a leverage role of funds, make full use of funds.

(F) T + 0 trading system: that is, the day of the contract can be entered into for the transfer of processing, the day of the profit, the same day you can hedge positions, make full use of funds, while mitigating the risks associated with long-term positions, the operation of mobile and flexible.

Three, the function of the spot electronic trading market

1, the investment function of the traditional spot trading due to geography, the quality of goods, investors, financial resources, professional level of restriction, for ordinary investors, there is almost no investment value. Spot electronic trading market as a result of trading is standardized electronic trading contract, the quality of goods is guaranteed; electronic trading, no more geographical restrictions; margin trading, less investment funds, ordinary investors can easily intervene, so as to obtain economic benefits.

2, the discovery of the discovery function, refers to the electronic trading market in the spot through open, fair, efficient, competitive trading operation mechanism to form a process with authenticity, anticipation, continuity and authority.

Traditional trading model due to geographical restrictions, coupled with the participation of few investors, the formation of often have obvious geographical, and through the spot electronic trading due to the participation of a large number of investors, including a large number of commodity producers, sellers, processors, as well as importers and exporters, etc., their bidding on behalf of the supply and demand side of the force, which contributes to the formation of the real. At the same time, most of the investors involved in the transaction are familiar with a certain commodity market, have a wealth of operational knowledge and a wide range of information channels as well as a set of scientific analysis, forecasting methods, so that the formation of the basic reflect the trend of changes in supply and demand.

3, risk aversion risk aversion function refers to the production operators through the spot electronic trading market hedging business, effectively avoid, transfer or diversify the risk of fluctuations in the spot market.

The reason why hedging can help to avoid risk, its basic economic principle lies in a particular commodity spot electronic trading and spot in the same time and space will be subject to the same economic factors and constraints, and therefore, in general, the two markets have the same trend of change.

The cotton meal, for example, cotton meal will rise to cotton meal as raw material operators to increase production costs, if a large number of deposits in the spot, and will take up a large amount of money, while causing a great waste of human and material resources and financial resources storage. In this case, you can buy warehouse receipts in the spot electronic trading market. With the rise of cotton meal, although the cost of spot purchases increased, but in the spot electronic trading market in the purchase of warehouse receipts will be due to the rise of a certain amount of profit to make up for the loss of spot, to achieve the purpose of risk avoidance.

Four, the role of commodity electronic trading in the modern economy

1. Eliminate the emergence of fake and shoddy commodities to chase profits for the purpose of the traditional spot trading, for the emergence of fake and shoddy products to provide a breeding ground, and in the spot electronic trading market, due to the purchase and sale of standardized contracts, and the standardized contract represents the provision of the quality standards of the spot commodities, and these spot commodities in the process of the electronic trading market. At the same time, these spot commodities in the registration of the East China Feed Ingredients Market to be designated by the quality inspection agency to carry out inspections, not with the buyer and seller of any conflict of interest, therefore, to ensure the quality of spot commodities, to eliminate the emergence of counterfeit and shoddy goods, and to protect the interests of the buyer and seller.

2. Avoid triangular debt buyers and sellers in the transaction, the market will freeze part of the funds as the two sides of the performance of the deposit, and with the spot electronic trading contract performance date is approaching, the proportion of the deposit will be increased accordingly, which not only ensures that the performance of the contract, but also avoid the problem of triangular debt, the market plays a very good referee's role in maintaining the market normal and orderly development of the market. development.

3. Reduce circulation costs, stabilize production and marketing relations market not only provides the majority of investors with a convenient electronic trading platform, but also a developed logistics and distribution system, but also to the many production and management enterprises to greatly reduce the cost of circulation, reduce unnecessary expenditures, and at the same time, convenient transaction mode, but also for the enterprise to provide a new logistics procurement and sales system, so that can be sold or purchased goods, stabilize the production and marketing of the market. Or purchase related commodities, stabilize the production and marketing relationship.