JavaScript Menu Courtesy of Milonic.com
     Site Map            

 
   
Futures Markets > Advantages of Futures Trading  
   
Futures Markets - Advantages of Futures Trading  
   
  1. Leverage
    • Offer a very high leverage of margin allowing us a small deposit to invest in a contract which is very much higher in value.

  2. Liquidity
    • Generally commodity futures offer a high volume of trade.

  3. Two way market
    • Short selling is legal.

  4. Low execution cost
    • Total brokerage or commission is less than 0.5% of contract value.

  5. Protection order
    • We can predetermine our loss before we take a position.




  6. Hedging
    • The market offers a place for the transfer of risk for the commercial players.

  7. Diversification
    • The Market offers investors another avenue to channel his/their fund.