answersLogoWhite

0


Best Answer

Equity investment is an investment in a company by purchasing its stock. While there may be some risk, the company exists and has made a public offering, which indicates some stability. Futures trading involves a to buy or sell a certain commodity (sugar, pork bellies, etc.) on a specified date in the future and at the market-determined price at that time. Both equity investment and futures trading can be considered risky, much like walking a tightrope; the former has a slightly larger safety net below.

User Avatar

Wiki User

14y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why future trading is considered to be more risky than Equity Investment?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

When you make an investment you trade between what?

An investment will typically involve someone trading money for a certain share of the company or future company.


Where can one find information on future Forex trading?

One can find information on future Forex trading from Easy Forex, ETX Capital, Forex Factory, Investing and Vantage EFX websites. Future forex trading is investing today in the hope of profiting from the investment in the future.


Where can someone find information on future trading prices for gold?

Any trading site such as Etrade can help you check future trading prices for gold. Another place would be your local bank, or any local stock investment company.


What is the future of trade?

In Future Trading, one speculates on the price of a commodity going up or down in the future. In Future Trade, there is a contract up to a specific time what one can cancel at any time. In Future trading, one does not hold the actual commodity but the speculative investment in writing.


What is the purpose of Future Trade?

In Future Trading, one speculates on the price of a commodity going up or down in the future. In Future Trade, there is a contract up to a specific time what one can cancel at any time. In Future trading, one does not hold the actual commodity but the speculative investment in writing.


What is the future of oil trading?

Unless oil become extinct, oil trading will likely continue indefinitely. An oil future is a type of investment in which someone speculates whether the price of oil will rise or fall. It is a type of future contract in which both the buyer and seller agrees in advance on the price the buyer will pay for the future oil.


Is Wall Street a casino or an investment in the future?

an investment in the future


When did Future Trading Act happen?

Future Trading Act happened in 1921.


What does Commodities Future Trading Commission offer?

They offer the ability for people to invest their money in stocks of commodities such as crude oil and brent gold. The trading commision deals with the investment and the person just gives them the money and receives the shares.


How do you do a balance sheet. The only asset is an investment of 100000?

You need more information than that to create a balance sheet. There are three primary components of a Balance Sheet: Assets, Liabilities, and Stockholder's Equity. Assets are probable future economic benefits to the company. Liabilities are obligations by the company that will require the sacrifice of future benefits. Stockholder's Equity is the ownership interest in the company. Your total assets will always equal the sum of your Liabilities and Stockholder's Equity.


Is purchasing stock trading software a worthwile investment?

Depending on what you want to accomplish as a trader, yes trading software is a worthwhile investment. Trading software falls into one of three categories:Data: this tells you what prices the stock, future, option, etc is that you want to trade - it is a necessityCharting: data feeds that chart the price data - it is a necessityTrade Execution: places trades for youThere are many free trading software applications out there to try, but for more robust trading options, you may want to invest in something you have to pay for.


What Excel function calculates the future value of an investment?

The FV function calculates the future value of an investment.