Advntages
Futures Trading – The Advntages Of Trading Futures Markets
Trading futures contracts have several advantages over other investments:
1. Futures are highly leveraged investments. To ‘own’ a futures contract an investor only has to put up a small fraction of the value of the contract (sometimes as little as 2-3%) as ‘margin’. In other words, the investor can trade a much larger amount of the commodity than if he bought it outright, so if he has predicted the market movement correctly, his profits will be multiplied compared to the amount deposited as margin. This is an excellent return compared to buying a physical commodity like gold bars, coins or mining stocks.
If all this is a bit over your head, or you’re looking for a solid day trading strategy, I read more
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