Now, when there is clarity on what is a contract for futures on individual
stocks, the next question: "Why engage in trading futures on individual
stocks?". On this question there are many different answers.
As with all
other trading futures contracts, futures on individual stocks gives an investor
the opportunity to trade a product without having to actually own the property.
In 1974, the rule of "T" Federal Reserve Bank has established the
requirement for a guarantee fee to be placed on public sale shares of 50% for
small investors and 15% - for the dealers. Thus, an investor who buys shares on
the Stock Exchange with a guarantee fee, takes the difference in debt and may
either pay this "loan", or compensate for it when the shares are subsequently
sold.
On the other hand, the margin on futures contracts, whose sizes
are determined by each individual exchange futures, are not paid in
installments, but are a guarantee of the contract before the clear
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