Home > Articles > Volume 37 (2019) > Chapter 8 (August 2019) > Stocks & Commodities V. 37:08 (17, 22): Futures For You by Carley Garner

Stocks & Commodities V. 37:08 (17, 22): Futures For You by Carley Garner

Stocks & Commodities V. 37:08 (17, 22): Futures For You by Carley Garner
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Futures For You by Carley Garner

THE INS & OUTS OF FREE LEVERAGE

Could you explain how leverage works in the futures markets and how it’s “free”?

Those accustomed to trading stocks have come to accept the fact that short selling is only possible after borrowing shares from a brokerage at an additional cost. Further, stock traders know that purchasing more stock than they have the available cash for is referred to as trading on margin and involves paying interest to the brokerage for money borrowed to make the transaction ...




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