Report post

What is a futures ETF?

Exchange-traded funds can use futures as the assets that make up the fund. Futures ETFs give investors access to the futures market without having to trade on the futures markets. A futures contract is an agreement between a buyer and a seller based on an underlying asset.

What is the difference between an ETF and an IB?

Mind you, this is one the highest margin requirement in the business because of IB’s strict risk profile. Opposite, with ETFs you can only get 4x leverage intraday and 2x overnight. The futures market is far more liquid than ETFs for the most traded contracts such as the S&P 500, Nasdaq, bonds, gold, silver, etc.

What is futures trading and how does it work?

Futures trading requires lower margins and thus less capital in your trading account. The amount you “save” can be set aside for long-term appreciation, for example in ETFs or mutual funds. With ETFs, you are binding capital that could (perhaps) be of better use elsewhere.

Are ETFS a good investment choice for Global Investors?

ETFs, while popular, are not the number one investment choice for global investors. Meanwhile, in Australia, they have grown to become more popular than managed or index funds with one in seven Australians reportedly owning ETFs, according to a report by fund manager BetaShares.

Related articles

The World's Leading Crypto Trading Platform

Get my welcome gifts