Alfa Financial offers futures trading opportunities in currencies namely the Australian Dollar, British Pound, Euro, Swiss Franc, Japanese Yen, New Zealand Dollar and the Canadian Dollar, indices like the Nikkei, DAX, FTSE and EBUND; precious metals like gold, silver and copper; energy products like Brent crude, crude oil, natural gas etc., commodities like corn, wheat, coffee, sugar etc. and various other futures contracts that are traded regularly in the market.
Trading futures contracts has several advantages over other investments:
Futures markets offer greater liquidity and most markets are open throughout the day, providing traders with easy entry and exit points. There are a number of futures contracts being traded at any given point of time. Thus orders are placed quickly as there is no dearth of buyers and sellers. Also there are no significant variations in prices particularly for contracts with an expiry date of the next few weeks or months.
To deal in a futures contract a trader has to only invest a small fraction of the value of the contract called ‘margin’. For example, an investor can trade a US$100,000 worth of commodity, by paying US$2,000 as margin in futures trading i.e. just 2%.
Speculating with futures contracts is essentially a paper investment and you don't have to fret over storing the physical commodity. The term contract is used as there is an expiration date bound to the contract. The exchange of the commodity within the contract takes place in the uncommon scenario of the delivery of the contract.
Futures markets are more volatile than traditional investments and an investor trades in a commodity secured with margin due to which there is greater profit potential. But any irresponsible move can just as easily also lead to more losses. However, losses can be curbed with stop-loss orders.
The commission on Futures instruments is much lesser as compared to other investments and the trader has to pay them only after he ends his position.
Futures markets are comparatively fairer as compared to stock markets as it is quite difficult to get hold of any confidential information. Besides official market reports get released as soon as a trading session ends so any trader can scrutinise them before the start of the next session.