Disadvantage of commodity futures
Posted by 9b | Filed under Crude oil price forward business
Recently, high attention has gathered about forward business such as there is an event where the crude oil price rises. In forward business of commodity futures and the crude futures dealings, etc. , of course, there is a disadvantage though only the advantage tends to be talked, too. It wants to enumerate the disadvantage in commodity futures in the following and refer, please.
【Principal cannot be guaranteed 】
It becomes a treatment so to speak similar to stock trading called the market price dealings with commodity futures. Therefore..of course..deposit..guarantee..say..provide..say..commodity futures..do..afterwards..market price..expectation..in contradiction to..move..do..deposit..vanish..possibility..go out..come..end..still..good..deposit..further..add..situation..become..possibility..provide..attention..necessary.
【It is to say nothing of the risk 】
Commodity futures becomes a transaction system that makes the leverage by using the deposit and does. The thing said that it will obtain a lot of profits though only a little sum of capital is used when the price fluctuation the same as our expectation happens is possible. On the other hand, when the price fluctuation in contradiction to the expectation occurs, the loss grows oppositely as for the sudden fall of the crude oil price for instance etc. , too. It is too much pessimistically acceptable even if not becoming it, and the loss held off by the minimum thoroughly doing risk management though it says.
There are various disadvantages in commodity futures in this manner. This disadvantage will be understood well, and the disadvantage become not scary so much by thoroughly doing risk management, too.
Tags: and risk, commodity, Crude oil price, disadvantage, forward business
