Contract advantage of real estate index futures
Futures contracts traded on centralized exchanges allow market participants to use higher financial leverage and have greater flexibility, and because of the guarantee of exchanges, the risk of counterparty default is avoided. Spontaneous leveraged investment gives investors the opportunity to profit from the changes in house prices, and also provides these investors with some short-term real estate investment opportunities. Real estate futures contracts also provide investors with a way to predict real estate price changes with less capital demand.