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I would claim it's actually less risky because it's more diversified if we are talking about volatility but owning 100k in stocks would also get you dividends t

by mikkom 12y ago

I would claim it's actually less risky because it's more diversified if we are talking about volatility but owning 100k in stocks would also get you dividends that futures won't. (Also you can get higher margins much more easier with futures than with stocks and high margin of course means more volatility (=risk) )

throwaway283719 12y ago
> I would claim it's actually less risky because it's more diversified Yes, I agree (but then again, you could just replicate the index in your stock portfolio...) > owning 100k in stocks would also get you dividends that futures won't. Sure, and that's why the futures will generally appreciate faster than the stocks will - it makes up for the fact that you don't get dividends. Similarly, the fact that you only need to use a small part of your capital to hold futures means that you can earn interest on the rest, which provides a pull in the opposite direction, slowing down the rate of appreciation.