accountingbyte
Inscrit le: 12 Ao 2024 Messages: 3
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Post le: Jeu Oct 10, 2024 2:29 pm Sujet du message: Why do investors use stock futures in trading strategies? |
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People employ stock futures in a number of ways including but limited to, hedging, speculation and leverage. Automakers and commodity producers, for example, cultivate hedgers, for instance, institutional investors to reduce the consequences of volatility in the market. Whereas hedgers use futures contracts to lock prices and ensure they can buy or sell a particular commodity at a specific time at a fixed price speculators employ futures contract with the objective of earning a profit from movements in the price of the commodity but without the desire to own it. As for futures contract, it brings influence substantially, that is, traders may get large exposure at relatively small amount of money and yield higher returns as well.
Source: https://accountingbyte.com/fintechzoom-stock-futures |
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