Friday 13 April 2018

Potential of Futures Trading


Commodity futures are going to dominate the investor’s horizon in times to come and they are on the front lines of all panel discussions as well as business journals. Their bull run lasts for a cycle of around 15 to 20 years and their movements are not linked with those of securities. Thus commodity futures are in fashion these days.

Commodities as an Investment Tool: Investors are preferring commodities like gold and silver which have been traditionally investment avenues. Considering commodities, investors can expect returns in the region of 15 to 25 percent. But it is important for you to study the market carefully before investing in commodities such as wheat, sugar, chana, urad, guar seed etc. Indices are not permitted by the domestic regulatory structure but have a major role to play in guiding markets. Indices help you to take a view on the entire metals group instead of trading on a single metal.

Future Drivers: Even if global influences could have an impact on products, companies can assure themselves fixed prices by selling part of the products forward on exchanges. Also there are larger number of farmers participating on the exchanges.

Commodity market so far has been encouraging and its future is certainly very exciting. Rapid growth in commodities is obvious because there is a lot of interest being shown by foreign participants. Thus the demand for metals and energy products will always rise in future. Such opportunities need to be leveraged by market participants.

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, Gold Refining and Realty and Infrastructure. In a nut shell Abans Group is a comprehensive Financial Services and Solution Provider, which aims to provide an end-to-end financial solution to all its clients.

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