Many Australians have been interested in the. It is an exciting financial instrument to add to your portfolio, but you must understand the risks involved. The Australian Securities and Investments Commission (ASIC) has warned against dangers in futures trading in Australia.
The ASIC hasof futures trading. However, futures are not to be confused with options. you more protection than lots do.
In Australia, there is a little history of people engaging in futures trading, but this may changeoverseas. Australia’s financial service regulators, including ASIC and ASX, are trying to raise awareness of these risks among consumers and small businesses considering entering the market.
of an asset on a particular date in the future. However, there are significant risks involved with this type of financial product, which you before entering into any futures contracts.
These contracts allow you, traders, to gain from falls inand fall – by either going short or long on a future contract. Australia’s securities regulator states that if your position moves against you and becomes unlimited – you will have to pay more than you initially invested if to pile up. Futures can also result in complete losses, depending on how much money was . The margin required varies according to individual brokers, but it’s best to expect an amount considerably of the futures contract.
Margin differs from leverage, which you can use when trading,you to open up a position with only a fraction of the total value required if you open it on your own.