Why invest in futures?

The benefits of futures

With futures you can earn money with an economic depression or economic increase. This is also called ‘going short’ and ‘going long’. It is possible to achieve high returns with futures in a depression by speculating on a falling stock price. Of course, futures are also associated with risks. It is therefore always advisable to start with a simulator first. There are many reasons why you can achieve a high return with a future. For example, futures are flexible, available from a low stake and have low costs.

Futures are flexible

Futures are flexible because the spread is often very low. Spread refers to the difference between the purchase and sale price. For a private investor, a low spread is more advantageous than a high spread. The return increases considerably faster with a low spread than with a high spread. This means more profit.

Low stakes, high returns

Futures are characterized, just like other derivatives, by the leverage with which they work. This means that it is possible to achieve a very high return with a very low stake. When this is the case, we speak of enormous leverage. However, this leverage can also cause large losses.

location costs

The costs that online brokers charge the investor are low for futures because almost everything is automated. This means that you also pay few transaction costs and only have to pay a low percentage, or no commission at all. The exact heights of these commissions can be found per broker on the conditions page.