There are many inherent advantages of commodity futures as an investment vehicle over other investment alternatives such as savings accounts stocks bonds options real estate and collectibles.
The primary attraction, of course, is the potential for large profits in a short period of time. The reason that futures trading can be so profitable isleverage.
While profits can be large in commodity trading, it is not easy to make consistently correct decisions about what and when to buy and sell.
Commodity speculation offers an important advantage over such illiquid vehicles as real estate and collectibles. The balance in your account is always available. If you maintain sufficient margin, you can even spend your current profit on a trade without closing out the position. With stocks bonds and real estate, you can't spend your gains until you actually sell the investment.
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