Question:What are the advantages of Futures Investment? Why trade Futures?
Answer:
Trading futures contracts have several advantages over other investments.
Futures are highly leveraged investments.
Speculating with futures contracts is basically a paper investment without need to hold the commodity.
And investors can make money more quickly on the futures trade.
Firstly, because he’s trading with around 10 times as much of the commodity secured with his margin.
And secondly, futures markets tend move more quickly than cash markets.
Futures trading markets are usually fairer than other markets, like stocks and shares because it is harder to get inside information.
Most futures markets are very liquid. There are huge amounts of contracts traded every day.
Commission charges are small compared to other investments, and paid after a position has be closed.
