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Hedge Fund Managed Futures

Shrinking Futures Contracts: Why Smaller Is Better

iasg

2 months ago

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Outside of Warren Buffett, most companies actively endeavor to keep the price of shares reasonable for a wide audience, which can increase adoption rates and make their stock more desirable. Futures markets run into similar constraints. As contract values grow, they become harder to trade. Just like stock splits, futures contract sizes continue to be divided to match rising benchmarks. I expect this trend to accelerate as exchanges target more retail traders. The benefits extend to professional...

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