Why do investors buy stock futures?

People take this action primarily as a means of safeguarding themselves against market volatility. Investors can "hedge their bets" against adverse price changes by securing the future price. 

Stock futures are another tool used by traders to profit from market speculation. An investor might utilize stock futures to lock in a cheaper price if they think the price of a stock will increase dramatically. The holder of the futures contract in the Tesla example above may sell the contract before the three months are up in order to get a profit on the stock.



Purchasing stock futures is quite appealing since you usually don't have to pay the entire cost upfront. Selling stock futures on margin is common. This indicates that a deposit of typically 10% to 20% will seal the deal. As a result, investors are able to take considerably bigger stakes than they otherwise might have if they had purchased the stock
directly.

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