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Why Traders Trade
At first glance, the answer to this question is obvious. The simple fact of the matter is that traders
trade, or participate in markets, in order to make profits. But there are many aspects to this simple
answer.
Let’s look at a few of the most significant reasons for trading futures:
1.
Futures Trading Requires Relatively Small Start-Up Capital
Typically, one can get started in futures trading for as little as $10,000. In some cases
less capital is required. Many professionally managed trading pools require from $2,500
to $5,000 for participation. While most traders are not successful when starting with
limited capital, this is one way to get your foot in the door.
Futures options trading requires even less capital. Therefore, it is possible for
the individual to begin with an even smaller amount of capital. In. most other areas,
considerably greater capital is required.
The small amount of capital can work for or against you -- most often against you.
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