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Re: Why trade Futures?



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At 10:48 AM 7/24/98 -0600, BrentinUtahsDixie wrote:
>I take it that no one can think of any. 
>
>Brent
>
>----------

Futures in my opinion are by far the most effective trading vehicle in the
world.  You can choose almost any level of leverage.  You only need to put
down margin not the full cost of the position, so even if you are not using
the maximum leverage allowed, you get to earn interest.  One can easily go
long or short any market at any time.  That gives one diversity in markets
and direction.  One does not need to borrow money to short.  Commissions as
a percentage of total investment are very low. ($20 rt on an S&P is .0007%
commission round turn.)  In general futures give one the most bang for
their buck and the most freedom in stategy.  They also offer markets from
which money can be made regardless of the economy.  That is important b/c
one has only two ways to make money investing time, job, or money.  If the
economy is poor, most people's paid income will suffer or disappear.  If
they can only go long stocks, they are in a bit of a predicament.  Shorting
stocks is like splitting the atom compared to going short futures.  Some
future is always having a good move.

sb