Futures trading is developed on the basis of spot trading, which is different from futures delivery. It is a trading form of buying and selling futures contracts through exchanges. Since it is a transaction, there are gains and losses. What are the advantages and disadvantages of futures trading?
First of all, let me introduce the advantages of futures trading:
First, strong liquidity and high returns. The liquidity of stocks is relatively strong, investors can buy or sell at any time, the liquidity of funds is enhanced, and the income level is also improved to a certain extent.
Second, it can reduce losses. In general, the return of stock is not fixed, but changes with the change of company's return. When inflation occurs, the growth rate of corporate returns is generally greater than the inflation rate. At this time, shareholders' dividends can offset the losses caused by inflation.
Third, you can control the joint-stock company. Investors are shareholders of the company, so they have the right to participate in related activities of the company. When investors have large shares, they have the right to control the joint-stock company.
Everything has two sides, both advantages and disadvantages. Let's introduce the disadvantages of futures trading.
First, the futures trading system is not perfect. The trading system in China is to buy on the same day and sell the next day. In this way, this loophole was exploited, and people were suppressed, but they could not ship, causing losses.
Second, there is no limit to the short-selling mechanism. The introduction of stock index futures is to reduce or even avoid unilateral rise, but because the short-selling mechanism is not restricted, it will put pressure on the stock market, investors will reduce their positions and cut their meat, and finally let others take the opportunity to make profits.
Third, speculation in the futures trading market is serious. Some investors use leverage to make more profits.
The above is the knowledge about futures trading, and the advantages and disadvantages in futures trading. I hope everyone can make good use of its advantages, try to avoid its disadvantages and get more benefits from it.