
Advantages and disadvantages of futures
Futures markets can attract a wide range of participants, including stock and forex traders. The diversity of trading options, increased volatility, and the availability of leverage account for this claim. Traders who engage in futures trading apply leverage into the asset class, such as bonds, commodities, currencies, and equities. In the context of a regulated exchange, market participants are free to pursue their own plans.
Also, traders should not think of futures trading as a perfect place to trade. Traders must also be aware of the disadvantages that they might face. Futures markets are often unpredictable. Even the books about it have topics about dealing with unexpected volatility. There is also the complexity of the futures market to consider. Every contract specifies the trading hours, price, quantity, and expiration date.
Also, traders should not think of futures trading as a perfect place to trade. Traders must also be aware of the disadvantages that they might face. Futures markets are often unpredictable. Even the books about it have topics about dealing with unexpected volatility. There is also the complexity of the futures market to consider. Every contract specifies the trading hours, price, quantity, and expiration date.
Mar 10, 2022 10:09