With the current gloomy economic outlook, shares and commodity prices are on a downtrend and this includes Gold prices.
By investing in Futures, you are able to adopt trading strategies which will allow you to take advantage of price fluctuations despite the current economic slowdown. Below are some of the attractive features of Futures compared to other investment tools :-
1. Short selling - Traders are allowed to short-sell to take advantage of a bearish market and thus are able to profit from an uptrend or a downtrend.
2. Leverage - Higher returns with a small outlay of capital. See also my posting on Leverage and FKLI/FCPO.
3. Low Transaction cost - the cost for trading Futures is much less compared to investing in shares or property market.
4. Trading Strategies - Due to the flexibility of Futures trading, there are many trading strategies that can be adopted to maximise profit and minimize loss, such as scalping, spread trading, etc.
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