Are you looking for an investment strategy with these advantages?
Diversification
Commodity futures have a low
correlation to the stock market.
Increased Returns
Commodities in a portfolio with
stocks lowers overall risk and
increases expected returns.
Leverage
Tax Advantages
Futures trades are taxed using
the 60/40 rule where 60% is
treated as long term.
Ideal for Busy Schedules
Pre-determined optimal entry
and exit dates and extended
trading hours is ideal for
working professionals.
You have come to the right place!
TRADING FUTURES INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE ARE NO GUARANTEES OF PROFIT NO MATTER WHO IS MANAGING YOUR ACCOUNT.
Diversification
Commodities are real assets that have a low or negative relationship to stocks. Because commodities are real assets, they tend to react to changing conditions differently than stocks.
Increase in Oil Prices
Increase in Grain Prices
Decrease in Auto Sector Equity
Decrease in Food Manufacturing Equity
TRADING FUTURES INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE ARE NO GUARANTEES OF PROFIT NO MATTER WHO IS MANAGING YOUR ACCOUNT.
Increased Returns
By adding commodities to a portfolio of stocks, the overall risk of the total portfolio decreases. This is due to the low or negative correlation between commodities and stocks.
TRADING FUTURES INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE ARE NO GUARANTEES OF PROFIT NO MATTER WHO IS MANAGING YOUR ACCOUNT.
Leverage
Leverage is the ability to control a large contract value with a relatively small amount of capital. In the futures market it is called margin and is typically 3-12% of the contracts cash value. Leverage magnifies both profits and losses so proper risk management is an important element.
Let’s say you have $9,000 and want to own Gold
Physical Gold
• Cost is $1,800 / oz
• Can buy 5 oz
• Cash value = $9,000
Gold Stock ETF
• Cost is $9,000 • 50% Margin • Cash value = $18,000
Gold Futures
• Margin is $4,500 / contract • Can buy 2 contracts • Cash value = $360,000TRADING FUTURES INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE ARE NO GUARANTEES OF PROFIT NO MATTER WHO IS MANAGING YOUR ACCOUNT.
Tax Advantages
Futures can provide a significant tax benefit compared to other short-term trading markets. That’s because profitable futures trades are taxed on a 60/40 basis: 60% of profits are taxed as long-term capital gains and 40% as ordinary income.
Compare that to stock trading where profits on stocks held less than a year are taxed 100% as ordinary income.
TRADING FUTURES INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE ARE NO GUARANTEES OF PROFIT NO MATTER WHO IS MANAGING YOUR ACCOUNT.
Ideal for Busy Professionals
Futures markets have extended hours, so trading works around any schedule.
Trading decisions are based on end of day closing prices so there is no need to closely watch the market intra-day.
TRADING FUTURES INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE ARE NO GUARANTEES OF PROFIT NO MATTER WHO IS MANAGING YOUR ACCOUNT.