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.