Which of the following is not a potential advantage of speculating in futures?
A) Leverage
B) Ease of transacting
C) Low transaction costs
D) All of the above are advantages to speculating in futures.

Question

Quizplus · Accepted Answer

All the options listed (A: Leverage, B: Ease of transacting, C: Low transaction costs) are recognized advantages of speculating in futures markets. Futures trading allows for significant leverage, meaning traders can control large positions with a relatively small amount of capital. The futures markets are also known for their liquidity and ease of entering and exiting positions, contributing to the ease of transacting. Additionally, compared to other forms of investing, futures often have lower transaction costs.

Which of the Following Is Not a Potential Advantage of Speculating