Question

Explain the ways that a speculator can make profits in the futures market.

Answer 1

• Spectacular is a person who trades bonds,equitiesor currencies with a risk in return for higher profits.

They take risk in the hope of making large gains.

• They are risk taking Investors in the markets in which they trade.
• They use high investments like futures and options.
• Their tendency is to attempt to predict price changes in the markets.
• They believe that a high profit occurs,if market indicator suggests.
• They operate in a shorter time than a traditional investor.
• Speculative work carry a higher amount of risk.
• Because various market indicators support the likelihood of Asset.
• Spectacular purchases futures over traditional stocks.
• If particular Asset increases in value,he chooses to purchase the Asset.
• This activity based on increase in demand drives up the price of the Asset.
• If this activity is seen in the market as a positive sign,
• It may encourage the investors to purchase the Asset.
• This result in speculative bubble.