top button
Flag Notify
    Connect to us
      Site Registration

Site Registration

What are the benefits of trading in Index Futures compared to any other security?

+1 vote
122 views
What are the benefits of trading in Index Futures compared to any other security?
posted Jul 6, 2017 by Sagar Sharma

Share this question
Facebook Share Button Twitter Share Button LinkedIn Share Button

1 Answer

0 votes

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

answer Jul 6, 2017 by Vijay
...