Stocks & Commodities V. 26:3 (68): Futures For You by Carley Garner

Stocks & Commodities V. 26:3 (68): Futures For You by Carley Garner
Item# \V26\C03\055GARD.PDF
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Futures For You by Carley Garner

WHY TRADE FUTURES?

Many beginning commodity traders are migrants from the world of stock trading, but before making the transition they often ask why they should trade futures. The answer is simple, but the decision to move forward isnít.

No interest on leverage: The futures

market is a convenient venue for speculators in that the leverage is high and the ability to buy or sell in any order is abundant. Unlike equity traders who must borrow shares of stock from their brokerage firm before short-selling and are then subject to interest charges, futures traders can sell something they have never owned and buy it back at some point in the future ó hopefully at a lower price.




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