Category: Money Tips Date: 2006-12-21
After a continuous decline after the broader market, the Shanghai index has reached the lowest point in the near future, and is a team of "bear long bull short" of the form, in which long-term downward path is hard to find opportunities, not quilt has been pretty good a!
So, why do we not going to find a better investment products do? This is the "futures" to see that some friends might say: "Futures," the risk is too high, can not do. In fact, you really had to understand "futures" do? Then here say a few words:
First is the "futures" two-way interoperability: As the futures contract is at a particular time for delivery, so before the delivery period, investors can be the first to buy, then sell can first sell and then buy, If you do not intend to physical delivery, as long as the settlement reached before a buying and selling the corresponding open positions can be! This is only the first stock or other stock to buy after the sale than a full opportunity to profit more than doubled, so two-way operation feature that allows investors to "futures" investment in particular favor! And the numerous opportunities, regardless of Change has the opportunity to profit!
Second, is enabling investors to envy the "margin" trading system, namely: a small broad. Investment in futures trading, trading futures contracts without paying the full value of the transaction funds pay only a certain percentage of funds can be carried out as a security futures, margin generally equivalent to the total value of the contract 10% to 15%. Therefore, investors are 10% ~ 15% of the funds to do 100% of the sale, the financial leverage into full play, funds are effectively amplified draw an analogy: If you are 100 yuan trading futures contracts, just pay a 10 ~ 15 yuan cost 10 yuan when the Change, you also profit of 10 yuan, but the relative you input the cost of 10 to 15 dollars is almost double the effect! This is the "margin" trading system is superior!
There is easy access to information, true and reliable: As the "futures" are buying and selling futures contracts, which means you only predict a certain commodity, such as soybeans in the future the price of a certain time can be, and you just from the market understanding of a certain commodity price developments, market, and to predict the future price can be, but a commodity market conditions can be a lot of specialized information sources, while the problem is basically non-existent information to deceive!
The purpose of the stock market exists for corporate finance, with investor funds to the business activities of enterprises, while the main purpose of the futures market hedging, and resolve business risk involved in "futures" trading to earn just the normal fluctuations in commodity difference, therefore, from this perspective, the futures market more profitable than that!
Finally, the talk about the risks: In fact, in the "futures" market risk can be estimated in advance, and thus accurate control, the reason why we usually hear someone say, "futures" high risk because of the excessive use of "margin" trading system, the results of . In practice, the transaction can often be obtained using a number of analytical methods of approximation of the scope of price changes, which enable investors to more accurately estimate the profit or risk. At the same time, due to the flexible and comprehensive trading orders to enable investors to accurately control the risks within the scope of the expected, it is difficult to match in any other market.
For any one investment which will have an understanding of the process, you are welcome to join our Investment Club Ruifeng free instruction, we will help you to understand the profitability of this new species.
