Why Should You Trade In Futures Market?

Wednesday, April 25, 2018 posted by Joel 11:31 am

There are two types of the trading market available in the world for almost any tradable product available at the exchanges. The first one is cash market whereby you pay the whole amount of the product you pay. There is no concept of paying only a margin of the total amount. Then there is futures market whereby you can pay only a fixed amount of the total amount and hold on the product for a limited period. The reason why you should always opt for the futures market over cash is that you can invest the saved money in buying different tradable item instead of investing everything in one item. If you have bitcoins in your account, you can do futures trading using crypto on Bitfutures.

futures trading using crypto

Advantages Of Futures Market

More Exposure – As stated earlier that you are paying only a margin of the total amount through the futures market, you can diversify your portfolio so that you can invest in multiple sectors or stocks to leverage your investment. Even when one product does not perform or cracks down, if the others are up, you will not incur huge losses. Instead, you can easily make more profits. With a limited budget, you are getting more exposure in multiple sectors and products.

Unlimited Profit – In the cash market, if you have the money for buying one quantity of a product, in the futures market, you can get 10 quantities or more depending on the margin percentage. Therefore, you can buy more. By buying more, you are maximizing your profit changes 10 times. If you are good at predicting the markets and you want to make money shifting without investing everything in one item, this is the market for you. On top of that, if you have bitcoins, you can do futures trading using crypto on Bitfutures.

Trading – If you are an investor who is likely to stay invested for years in one product, you should go for cash market and pay for every quantity of the item fully. But if you are a trader who wants to make money on a regular basis which can be daily or weekly, the futures market is perfect for you as you can trade in multiple limited with a limited budget and your money will not stay stagnant. As a matter of fact, you can sell a product and keep it in that state if you know that the prices are about to fall. Therefore, you can make money in both directions.

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Category : Finance

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