Benefits of Futures Trading

People must invest in Futures Trading as it offers a good opportunity. This is the unique opportunity to invest in something other than stocks. Futures trading operate in the same manner like stocks but it presents a different method of earning revenues for the invested amount. In recent years, futures trading has gained much popularity. Only small margin of total capital is required for trading in Futures contracts and thus these are known as marginal contracts.

With respect to future contracts, there is an agreement between buyer and investor to exchange a specified quality or quantity of commodity to a specified date in future at a price agreed and fixed today. The price at which there is a deal of future transaction is known as futures price or strike price. Benefits of Futures Trading include:

a)      Futures trading is considered highly leveraged investment.

b)      Investor has a great chance of profiting tenfold for an initial investment if the trading is done correctly.

c)       It is a paper investment and investor does not have to worry about how to take care of commodity trading.

d)      Futures contracts being traded are considered very liquid.

e)      It enjoys fairer trading as compared to stock and share trading.

The commissions on futures markets will be always smaller as compared to other trading markets. Investors can make quick money on futures trading because of the markets moving more quickly. But this can also lead to quick losses for the investors if predictions on their positions are incorrect.

Founded in 2005, ABans Group has grown from being a trading house to a dynamic and diversified business group.We provide expertise in Broking Services, Merchant Banking, Non-Banking Financial Dealings, Jewellery manufacturing and Realty and Infrastructure. It is a comprehensive Financial Services and Solution Provider,which aims to provide an end-to-end financial solution to its clients.