We can term this future trading as the
investment done on the commodity products by presuming their price to be hiked
or lower in the future. Future is one of the forms of derivatives and the other
to be the options. Future trading is slightly different from the share or stock
trading. In future trading one can buy a contract which has a specific lot
seize depending on the volume of stocks. Thus the future trading is also called
future contract as this contract always involves a certain expiry date. In the
recent times this kind of trading can be easily done through internet sitting
at a particular place by the online
future trading methods.
Future trading has a lot of advantages
over other trading methods. First to say is that these investments are highly
leveraged, if the buyer can predict the movement of the market correctly he or
she can multiply the profit in huge number with very little or marginal
investment. A certain margin is required to hold a future contract which we
cannot term as a down payment but instead it act as a security bond.
Future trading is basically a paper
contract and one will not have to stock the commodities physically. The future
markets are faster than any cash market so one can make money very quickly
provided he or she assumes the market movement correctly. This is the main
reason that future trading involves a lot of risk in it. Online future trading is very common and is practiced by the
skilled professionals.
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