Trading Futures

It is important for you to know the difference between trading futures and trading stocks before we share insights on futures. You share ownership with other investors and you own a part of company whenever you buy a stock. And with respect to Trading Futures, the selling and buying of commodity in the future always requires a contract. You just need to tie up resources in the form of margin and thus futures trading is as easy as trading stocks. Advantages of trading futures are as follows:

1)      Trading Long and Short –Once you decide direction you think the market is headed then it does not matter whether you are going short or long with futures.

2)      No Day Trading Limits –After IRS considers you a day trader, stocks can be traded only three times a day. The buying, selling of futures can be done any number of times in a day and quick profits as well as benefits can be taken from intraday swings.

3)      No Wash Sales Penalties –There is no penalties from IRS if you take a loss and reenter the same trade within a month. Futures pricing are recorded market to market and thus it is not penalized for futures.

4)      24 Hours Trading –Except on weekends, trading in futures is nearly around the clock.

5)      European Style Trading –Stock options follow American style while most futures options trade European style.

6)      Tax Advantage –Options on futures are treated according to IRS section 1256. There is always a tax advantage as 60% of all gains are considered long term.

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, realty &infrastructure. It is a comprehensive financial services & solution provider,which aims to provide an end-to-end financial solution to its clients.