1.

What Are The Benefi Ts Of Trading In Index Futures Compared To Any Other Security?

Answer»

An investor can trade the ‘entire stock market’ by BUYING index futures instead of buying individual SECURITIES with the effi ciency of a mutual FUND.

The advantages of trading in Index Futures are:

  • The CONTRACTS are highly liquid.
  •  Index Futures provide higher leverage than any other stocks.
  • It requires low initial capital requirement.
  • It has lower risk than buying and HOLDING stocks.
  • It is just as easy to trade the short side as the long side.
  • Only have to study one index instead of 100s of stocks

An investor can trade the ‘entire stock market’ by buying index futures instead of buying individual securities with the effi ciency of a mutual fund.

The advantages of trading in Index Futures are:


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