Free Online Trading Lessons Archives
Speculate in Stocks, ETFs, or Futures Contracts
Trade futures, or trade stocks?
For those looking for speculative opportunities, as opposed to traditional buy and hold investing strategies, there are generally two arenas competing for attention; the equity markets and the futures markets. Both venues offer speculators the ability to reap abnormal profits, or suffer painful losses, but there are deciphering characteristics that should be taken into consideration when choosing where, and how, to allocate speculative dollars in a traditional portfolio. Learn from commodity broker, Carley Garner, about the advantages and disadvantages of trading stocks, ETFs, and commodities.
• Liquid trading hours
• Tax implications for stock and futures traders
• Ease of access to leverage
• Option market liquidity
• Expiration of futures contracts
• Cash flow implications (dividends, etc).