5 Advantages of Futures Trading Over Conventional Business

Trading forex or other futures products can already be categorized as an individual business. However, when compared to conventional business or trading in the real sector, there is a difference between trading futures and trading physical goods.

Here are some differences between futures trading and conventional business which shows that futures trading is more practical &flexible in terms of time and business format.

1. Capital is Not Large

To start trading futures, no large capital is required. Enough millions of rupiah can already open a futures trading account. This is different from opening a restaurant, for example, of course it requires a large capital, in the range of hundreds of millions to billions of rupiah.

2. Flexible Place / No Need to Rent a Business Place

To carry out futures trading activities you can do it anywhere, at home, restaurant, café or even in the park. Simply with an electronic device such as a laptop, desktop PC or smartphone, you can make money from trading futures.

3. Can be Done Anytime

Futures trading lasts for 24 hours non-stop during weekdays or five days a week. Decide for yourself the time you find convenient to trade futures. While trading in other fields of business is certainly limited in time.

Even if there is a business that is open 24 hours, of course, it must first get permission from the government and need to follow official procedures. Usually a lot of time will be wasted just waiting for the issuance of permits.

4. No Need for a Warehouse

In the clothing store business (for example), as the business progresses, the volume of goods sold also increases. Over time, the place of business became unable to accommodate merchandise so a warehouse was needed to store. If there is money then you can buy or set up your own warehouse, but if funds are limited then you need to rent a warehouse.

Whether buying, setting up or renting a warehouse, means that there is extra expenditure for this real sector business. This is not experienced by futures traders. Although profits increase and capital increases, there is no need for storage because there is no physical item that must be.

5. No Need to Pay and Train Employees

Employers in the real sector need the help of others or hire employees to take care of their business. They need people to help send goods, serve payments from buyers to take care of administration. In addition, you need to provide training to employees for specific skills, such as cooking, in a restaurant business, or how to serve customers.

As a futures trader, you don't need employees. You do need someone else also in futures trading, but more as a companion, such as an experienced trader or an educational staff at the broker you are trading with.

These are the advantages of futures trading when compared to conventional business. You can enjoy these advantages by opening a live account here.