This is because as a futures contract rises or falls, unit price is magnified by degree of leverage.

Let’s look at an example to help clarify this.

A futures trader buys one (1) contract for Corn at an entry price of $2.00, and later sells that contract at an exit price of $2.10. This represents a return of 83%.

Here’s how it works: 1 contract of corn represents 5000 bushels. The entry price was $2.00, which is $2.00 a bushel, making total contract worth $10,000.00.

Let’s say margin requirement for corn is $600.00. So, for $600.00 you are controlling one corn contract worth $10,000.00.

The contract was sold for $2.10, for a total contract value of $10,500.00, which means that trader has made a profit, before commission, of $500.00.

So trader has basically invested $600.00 and has made a return on that investment of $500.00. The return on investment of $500, divided by margin of $600 = an 83% return on that investment.

This trader has made a profit of $500.00,less commissions, and of course, still has margin amount of $600.00,.

Leverage is a two-edged sword. It can create tremendous gains or losses, so must be used wisely.

6) Transaction costs

Transaction costs in futures markets are small compared to most other markets. Commissions are usually $50.00 or less to buy and sell a contract which can easily have an underlying value of $50,000.00 or more.

7) Variety.

Futures markets provide a tremendous variety of investment opportunities. There are traditional markets like grains, metals and food. There are financial futures markets that trade contracts on all sorts of interest rates, stock indices, and currencies. Then there are energy futures markets that provide opportunities in crude oil, natural gas, heating oil, and gasoline.

The incredible variety of futures contracts allows traders to take trading positions for nearly any opinion one can have about developments in markets.

8) The Ultimate Home Business.

Can you think of any other business where you have an opportunity to earn unlimited income, spend more quality time with your family, have more free time for your other interests, and live lifestyle you want?

A home business where:

·Returns of 200%, and more, are very common, and those returns are often made within a few days.

·It doesn't require a big outlay of cash to get started. (One trader, who became legendary, started with about $400.00 and turned that into about $20,000,000.00. yes, that is twenty million dollars).

·As you can see from above point, your profit potential is virtually unlimited.

·Your income is not limited to your personal output. You do not have to work harder or longer to make more money.

·You are in full control of your business. You make all of decisions, and answer to no one.

·There's no marketing or advertising expenses (in any other business these are major expenses).

·Your business is global in scope.

·This is a cash business; you don't have to worry about any credit terms.

·Your business is recession proof, so it doesn't matter what economy is doing.

·You don't have to worry about payrolls, employee benefits, absenteeism, or any staffing related problems, because your business does not need employees.

·Because there are no employees you do not have any labor costs, which are usually a very substantial expense in any organization.

·Your start-up costs are up to you.

·Running your commodity trading business doesn't take up much of your time so you can have ample free time for your family and other interests.

·Your overhead expenses are low.

·You determine how much time to spend on your business. You can start small and grow at your own pace.

·Your business can be operated from just about anywhere in world.

·Your business involves products that are in constant demand by people and businesses all over world, yet you do not handle these products. Therefore, you won't have to worry about selling anything, storing inventory, or having merchandise returned.

·There are no customer complaints, or outstanding accounts to try to collect, because your business does not need customers.

·Your business has nothing to do with Multi Level Marketing, or Network Marketing. You do not have to try and recruit others, then help them to recruit others, and so on, and so on. There's no down-line or up-line to worry about.

·Your business satisfies your intellectual (and often emotional) needs, as well as your financial needs. There's nothing like being fascinated with what you're doing. When that happens you're not working, you're having fun.

Futures markets represent a wide and diverse cross section of global economy. This diversification and energetic nature of futures speculation make these markets attractive to many investors, whether they want to diversify their holdings or, are seeking a higher risk/return investment.

All serious investors should allocate some portion of their portfolio to futures trading.

Rob Hall is a successful futures trader, President & CEO of his own trading firm, and international author. His books on learning to trade futures markets are distributed through Sumas International Sales Ltd. View them at http://www.futuresopps.com/Commodities.htm

By working in youre sweet home you don't have to get up at 6 AM in morning to prepare yourself to go to work. You can start working whenever you want and like you want it. You can work part time like 4 or 5 hours a day and still make a decent income on internet. 

Or you can keep your current job if you are just starting your internet business and make an extra income. Or wait until youre business is running at full speed and you don't need youre job security anymore.

With an internet business you are your own boss. By being your own boss and being able to schedule your own work hours you NOW have freedom to do what you want when you want to with whom you want at anytime. It's a great feeling to be in control of your own life and do what you want when you want.

You are an internet Entrepreneur NOW. You are chief of your entreprise. You are master of your destiny.   Remember your internet business should be treated as a real business. This is your new job. You are one who takes decisions for now on. You can manage your time without someone else telling you when you should work and take care of your business.

Starting an internet business have many advantages, but be sure you have time and effort to give to your internet business so that you'll enjoy financial and personal freedom you are searching for.   As long as you think positive and focused on your business target you’re on right way to a rich life, which is directed by you and it will lead you to tremendous success.

Copyright © Michel Richer

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