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Why You Should Consider Managed Futures Trading

Investors may use futures to manage risk of volatility as well as to speculate on profit opportunities as a result of market movements. However, futures as derivatives are sophisticated in nature and investors may find it a challenge to gain full benefit from these markets.

Therefore, many investors source the best professional talents in trading futures to pursue and optimize profits in the futures market.

Managed futures have thrived since the 1980s to the present day as a rational means to meet investment demands.

Institutional investors such as the banks, corporate and public funds have driven the development of the managed futures industry and have identified it to be an essential component of the well-diversified portfolio of which the trading activity is directed by technical analysis. The analysis includes historical price patterns which include moving averages, price channels and momentum systems.

Why You Should Consider Managed Futures Trading

Here are top 3 reasons why investors should be looking at managed futures investments.

Attractive Return of Investments

Managed futures make both attractive stand-alone investments and portfolio assets, due to the nature and volatility in the market itself.

Reducing Portfolio Volatility

The high reward/risk ratio of managed futures in a portfolio can be reduced volatility diversification beyond traditional stocks and bonds. This is because managed futures have low correlation with conventional stocks and bonds.

Returns in Bull or Bear Markets

Managed futures have the capacity to go long or short in the market. Thus being able to be profitable in either a bullish or bearish economic environment. Futures and commodity prices may increase significantly during periods of inflation while investors may take a short position in periods of recession.

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1 Comment to Why You Should Consider Managed Futures Trading

  • David thompson's Gravatar David thompson
    April 18, 2015 at 11:40 AM | Permalink

    Let me have more info