Though, futures trading of commodities are considered as a measure of hedging the price volatility of underlying commodity, there are many other advantages that a client can get from it. They are:
- Highly leveraged investment, as an investor has to put up a small fraction of the value of the contract as 'Margin'.
- Availability of round the clock electronic trading services.
- Simple and reasonably low transaction fee.
- Huge amounts of contracts can be traded every day as futures markets are very liquid.\ Availability of both standard and mini contracts helps traders to choose.
- Paper work required only at the time of registration.
- No need for holding/storing the underlying commodity or equity.
- Instant execution of orders.
