Reasons Investors Should Trade Small Exchange Products

Reasons Investors Should Trade Small Exchange Products, Benzinga

Jun 26, 2020

By Benzinga

"On May 19, the Small Exchange announced the launch of a new CFTC approved futures exchange, marking a new beginning for the industry as market participants now have access to standardized, easy to consume financial instruments. In light of the launch, Edge Clear, a low-cost futures brokerage tailored for the active trader, hosted a live event showcasing the efficiency and flexibility provided by Small Exchange products. Why The Small Exchange? Futures are an agreement to buy or sell a particular asset at a specified time in the future. Typically, the contracts are levered, offering efficient and direct exposure for hedging or speculation purposes." reports Benzinga.

“Futures contracts offer some very enticing benefits over stocks and ETFs,” said Michael Gough, Business Development Analyst at the Small Exchange. “However, traditional futures, which were largely intended for institutional investors, are also much larger in size than stocks and ETFs. A lot of times they force you outside of your comfort zone, taking on too much exposure. We’ve created products that are standard in their construction, so you spend less time studying contract specifications and more time engaging in the market.”

“Small exchange products are actually scaled-down. They’re palatable in size, so you benefit from the efficient margining at much lower cost,” Gough told listeners. We look at our Precious Metals index, which is moving about $85 per day, versus gold, silver, and platinum futures that currently swing upwards of $2,400 on an intraday basis,” Gough added. “Our sleek interest rate product is actually quoted in yield and moves at just a fraction of interest rate bonds and notes.”

“A big focus of ours, as we launch new products, is to put options on futures,” said Pete Mulmat, Chief Commercial Officer at the Small Exchange. “Having monthly expirations allows us to overlay very easily concurrent monthly expirations that will exercise and collapse into that cash settlement.”

The Small Exchange is making futures markets more accessible to more people with small, standard, and simple products that combine the best of futures and stocks.

Read the full article: Reasons Investors Should Trade Small Exchange Products.

This story also received coverage from Yahoo! Finance.

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