Futures Trading -
whenever there is speculation in price of commodity and that too in the form of
paper investment.You make a profit if you speculate correctly and vice versa. It
is not necessary for you to hold the physical product in order to make money
because of paper investment and commodity can be anything from currency to
rice. The contract of the product will help you to speculate the prices.
Speculators and
hedgers are main types of people who trade in futures. The manufacturers of
products are hedgers and they protect themselves by trading in the event the
price of the product changes. On the other hand, speculators do not have
connection with the products as they do not produce the products. They are
always interested in making money with the movement of market to their
advantage. Benefits of futures trading are as follows:
High Returns: You can make a lot of money if there is a right
speculation and this is because of futures that are highly leveraged
investments. Sometimes the profits are multiplied tenfold on what you have
speculated. You make a tidy profit and get back your margin if the market goes
according to your speculation.
Dealing with Papers: In futures trading, you do not have to hold the
actual product because you always work with papers.
No inside Information: If you consider other forms of trading then there
are cases where some people do not have inside information and they make
losses. But in futures trading, an official market report is released at the
end of a training session and everyone interested can look into it.
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 FinancialServices and Solution Provider,which aims to provide an end-to-end financial
solution to its clients.
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