Futures traders trade today’s prices, but the settlement is taking place in the future. So we buy if we think prices will increase and sell if we think prices will drop. If you buy (or sell) a futures contract today, you don’t have to hold it until the contract expires; you can simply choose to sell it (or buy it) in the market at the prevailing price. It is advised for beginners not to enter futures trading because it has high risk and high profits. Only a stock market expert would prefer futures trading.
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