Why Futures Now?
If you interested in an investment alternative to stocks, bonds or real estate to diversify your investment portfolio, futures markets may be just what you look for. If you seek to control your business and investment exposure to adverse fluctuations in values of commodities, stock indices, foreign currencies and interest rates, futures provide an effecting mechanism to manage such risk. Individual and business of all sorts – from farmers to pension funds – participate in the futures markets as part of their investment and risk management solutions.
If you never explored futures before, you probably have a lot of questions about what futures are and how they work. This section of our website is not meant to be an educational treatise, but rather, an outline of certain characteristic of futures, helpful hints for your consideration of participating in futures markets and opinions on how you may start.
Why Trade Futures?
Providing fast, easy, and cost-effective way of accessing financial and commodity markets around the clock, futures offer you the most direct and transparent method to act on your insight and participate in market trends. Futures also allow you to hedge adverse price volatility to risk manage your business operation or investment portfolio.
Transparency
Regulated futures exchanges provide a centralized marketplace where trading is open, fair, and anonymous. Comprehensive price and transaction data is distributed in real time providing clear and transparent view of the market to all participants.
Nealy Around-the-Clock Trading
Most futures markets trade around the clock and around the globe. It’s easy to get in and get out of position in popular and liquid futures markets. Thus, if overnight events dictate action, you can participate.
Pure Price Play
Whether you have a perspective about commodity prices, energy prices, interest rates or stock market direction, futures allow you to invest directly in the markets and events you have an opinion about. There are no secrets. Futures market data often come from government agencies, exchanges and other public domain sources.
Ease of going short
With futures, it’s just as easy to sell as it is to buy. Unlike many other investments instruments, there are no special forms to fill, no “uptick rules” and no higher financial requirements to meet. The requirements for taking a short position are exactly the same as for a long position.
Capital efficiencies
Futures is one of the most capital-efficient investment vehicles available. High degree of leverage is created through the use of margin (minimum deposit required to buy or sell a futures contract), which may represent only a fraction of the total value of the contract (often 3-12%). With futures you can make a larger investment using a much smaller amount. Please remember that leverage is a double-
edge sword. While leverage provides for greater returns for investors on the winning side of the market, it equally enhances losses if market moves against them.
Risk Management
Futures offer unique risk management capabilities for companies and investors with risk exposure to adverse fluctuations in values of commodities, stock indices, foreign currencies and interest rates. Hedging risk with the use of exchange traded futures contracts and options provide an effective mechanism for managing market risk.
If you never explored futures before, you probably have a lot of questions about what futures are and how they work. This section of our website is not meant to be an educational treatise, but rather, an outline of certain characteristic of futures, helpful hints for your consideration of participating in futures markets and opinions on how you may start.
Why Trade Futures?
Providing fast, easy, and cost-effective way of accessing financial and commodity markets around the clock, futures offer you the most direct and transparent method to act on your insight and participate in market trends. Futures also allow you to hedge adverse price volatility to risk manage your business operation or investment portfolio.
Transparency
Regulated futures exchanges provide a centralized marketplace where trading is open, fair, and anonymous. Comprehensive price and transaction data is distributed in real time providing clear and transparent view of the market to all participants.
Nealy Around-the-Clock Trading
Most futures markets trade around the clock and around the globe. It’s easy to get in and get out of position in popular and liquid futures markets. Thus, if overnight events dictate action, you can participate.
Pure Price Play
Whether you have a perspective about commodity prices, energy prices, interest rates or stock market direction, futures allow you to invest directly in the markets and events you have an opinion about. There are no secrets. Futures market data often come from government agencies, exchanges and other public domain sources.
Ease of going short
With futures, it’s just as easy to sell as it is to buy. Unlike many other investments instruments, there are no special forms to fill, no “uptick rules” and no higher financial requirements to meet. The requirements for taking a short position are exactly the same as for a long position.
Capital efficiencies
Futures is one of the most capital-efficient investment vehicles available. High degree of leverage is created through the use of margin (minimum deposit required to buy or sell a futures contract), which may represent only a fraction of the total value of the contract (often 3-12%). With futures you can make a larger investment using a much smaller amount. Please remember that leverage is a double-
edge sword. While leverage provides for greater returns for investors on the winning side of the market, it equally enhances losses if market moves against them.
Risk Management
Futures offer unique risk management capabilities for companies and investors with risk exposure to adverse fluctuations in values of commodities, stock indices, foreign currencies and interest rates. Hedging risk with the use of exchange traded futures contracts and options provide an effective mechanism for managing market risk.
Trading futures contracts or options on futures contracts involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the Risk Disclosure available on our website.
ECG Futures is a registered ‘dba’ of Essence Capital Group, Inc
Registered Independent Introducing Broker | Registered CFTC | NFA Member | Since 2007
Past performance is not necessarily indicative of future results. Trading commodity futures and options involves substantial risk of loss and is not suitable for all investors.
Please read our Risk Disclosure, Privacy Policy, Legal Notice and Cookies Policy.