Friday, July 6, 2007

Why Discount Futures Trading ?

There are some advantages in futures trading :

  • Trade futures for leverage

when you buy futures , you only have to put a small proportion of the value of the underlying asset.

  • Trade futures for speculation

if you expect the market to be bullish, you can buy futures . But if you expect the market to be bearish, you can sell futures.

  • Trade futures for hedging

futures can give protection from the price movements of the underlying asset in the futures.

  • Trade futures is very liquid

it's easy to open and close positions in futures market

  • Short term trading for futures

i think it's easier to do short term trading in futures.

what do you think about the benefit of discount futures trading ?

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