Trading in Future is yet another form of investment but here it is based on speculation and in case of success you can get financial freedom! It is obvious that you will want to know the meaning of Trading in Future. The traders take a risk and trade by speculating the performance of a commodity in a certain future time. Trading can also take place on the predicted performance of the agricultural goods. Future trading is done on the goods like oil, gas, gold, tea, coffee, sugar, etc.
Putting it in different way, a trader agrees to buy a given quantity of any good in a future date at a price that he thinks will be the true price of that commodity on that date. Do you want to know the logic? In case the prices of those commodities go up before that date, you are a gainer and in case the price goes down then, it is a sad story for you! It is mandatory that you do a little bit of research work on the commodity that you want to trade on. You must know the trends of the commodity price before you actually invest and this is because, any abrupt decision can eliminate the chances of making money and you can face financial loss! There are a number of factors which drastically impact the behavior of the commodities (specially agricultural and live stocks) in the stock market. Current factors which do not seem significant (like floods, strikes, droughts, labor disputes, storms, etc.) impact on the future mood of the commodity and hence should not be ignored. If not numerous, there are few advantages of Trading in Future. Heading the queue is that you can hold a large quantity at a very low investment. Following the previous one is the one of low transaction cost of huge competition in the futures markets. Lastly, you can have high tax benefits on the investment. The future is open and if you want to propel yourself there, it is your choice!
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