Advantages of trading Futures
Futures are excellent for traders who want access to multiple markets and trade with leverage.
Exchange traded 24/7
Futures are exchange traded which means there is less risk of manipulation. Enjoy access to 40 exchanges worldwide and trade or hedge over 60 futures products virtually 24 hours.
Trading futures means that you trade with leverage. The initial margin, is the cost of entering the trade. Hence the amount you need to have deposited in your account to be able to open a position. The initial margin of a futures contract is a small percentage of the futures contract value. This means that you may control more capital than you have deposited in your account.
A majority of the futures markets are very liquid, particularly the most commonly traded commodities, currencies, and indexes. This reassures that traders can enter and exit positions when required.
Low execution and comission costs
Futures are cheaper in relation to the market exposure you get with one contract. With low commissions and low slippage, futures are a low-cost alternative to other securities.
Great for Diversification
Standardized contracts for a broad selection of asset classes, e.g. commodities, energies, metals, equities, indices, and interest rate markets are all available to trade as futures.
Hedge or Speculate
With superior technology, the low spreads have made this a market available to almost everyone.
Hedging and Speculating
Future traders are categorized into one of two categories: hedgers who have an interest in the underlying asset and who aim to mitigate the risk of price changes; and speculators who aim to make a profit by forecasting market fluctuations and opening a derivative contract relating to the ‘on paper’ asset, while they do not have a practical use for or intent to actually take or make delivery of the underlying asset.