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My opinion is that they're not. Millions of people have tried speculating in the commodities market and gotten taken. Two reasons exist for this. First of course is the fact commodities change price all the time. And second is the reality of a futures contract: by entering into one, you guarantee you will buy whatever it is the contract says you will, on the date it says on the form. So you have a July wheat futures contract that's marked for 600 cents per bushel, wheat is selling for 500 cents per bushel, the bakers and millers know you have nowhere in your house to store 150 tons of wheat, and it's June. "Well gee Mr. Speculator, too bad about the price of wheat, I'll take that contract off your hands for...oh, 485 cents per bushel." You of course still need to pay the man with the five truckloads of wheat 600 cents per bushel.
Options contracts, by comparison, have a LOT of uses to an investor. You can use them to stop losses or lock in gains. You can buy stock cheap with them.
What else can I help you with?
Hedging with index futures means?
Hedging is the process of minimizing the risk to an investor's portfolio by minimizing their exposure to stock volatility. Index futures are the act of investing through an obligation to purchase or sell a product by a certain date. Hedging with index futures is the act of trying to minimize the investor's exposure to the volatility of futures.
Are futures contracts long term contracts?
They can be. If you look at the futures pricing, you'll see futures contracts that settle in 2013--and futures contracts that settle next month.
Where can one get a futures trading account?
Numerous futures brokers exist; most can be accessed online. These include RJO Futures, Optimus Trading Group, and Global Futures, Noble Trading, and E-Futures. Simply visit the website and apply to open an account.
What is an investor?
An Investor is someone who buys stocks..Eg..I am a investor becasue i by into a stock
Where can one find futures trading charts online?
There are numerous futures trading charts online. One can find these online charts at Trading View, Express Futures, United Futures, Trade Station and many other online locations.
What does a futures trading platform do?
A futures trading platform allows a trader, or investor, the proper software needed in order to trade futures securities on the live market. without a futures trading platform it would be extremely difficult for the average retail investor to partake in the futures market.
Hedging with index futures means?
Hedging is the process of minimizing the risk to an investor's portfolio by minimizing their exposure to stock volatility. Index futures are the act of investing through an obligation to purchase or sell a product by a certain date. Hedging with index futures is the act of trying to minimize the investor's exposure to the volatility of futures.
How can I trade futures?
Pfgbest.com will help you learn how to trade futures. They even offer a free investor tool kit that you can take advantage of.
What information is the on Gas Futures?
There is no site called Gas Futures. To trade in gas futures, you would need to get information about current gas production and the price of gas. Expert outlooks about gas prices would also be useful.
How does a futures contract work?
A futures contract works between two businesses. It allows for two businesses to come to an agreement on a given product's price despite the product's price volatility. This process allows the two businesses to transfer their risk and reward to a third party investor.
What are some reasons why one would make an investment in futures?
The price exposure when investing in futures is the same as buying a share, but futures require less capital. Therefore, an investor can trade in amounts up to 5 or 10 times greater than regular share trades. Some advantages of investing in futures include being able to gear your investment, going short in the market, and making an investment that tracks the entire market though one simple transaction.
What is Young Investors Times?
Investors times is a young investor that is blogging at http://investorstimes.blogspot.com He has for aim the education of investors that have just entered the investment world. His blog has a lot of information that the avid investor might found useful.
Are futures contracts long term contracts?
They can be. If you look at the futures pricing, you'll see futures contracts that settle in 2013--and futures contracts that settle next month.
How do you purchase a futures contract?
You purchase a futures contract by first opening a futures trading account, which is a margin account, with a futures broker. Once that is done, simply choose the specific futures contract you wish to buy and then pay its "Initial Margin", which is a deposit needed to start a futures trade.
What is the difference between investor and trader?
A trader buys and sells, but usually for someone other than himself. If I want to buy a stock, I would get a stock broker to buy it for me. The stock broker would then be acting as a trader, while I would be acting as an investor. An investor looks for profitable investments, which is to say, things to buy, such as stocks, bonds, gold, coffee futures, etc., which will increase in value and/or generate a good rate of dividends. A trader is just concerned with buying and selling.
When did Tosu Futures end?
Tosu Futures ended in 1997.
When was Tosu Futures created?
Tosu Futures was created in 1987.
