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Derivative instruments and futures instruments are excellent products traded in Monex.
The basic understanding of derivative is a derivative instrument that has the characteristics and value of the instrument based on its parent.
The fundamental difference between asset trading of the derivative product transactions in a way that is different and unique and have a variety of the following advantages;
Derivative instruments or futures allow you to take advantage of the up and down movement in price. The main obstacle to the usual asset transaction instrument, is limited to taking sell-off. So that profits can be maximized only through buying. This trend can be seen on conventional instruments such as land, Indonesian stocks and other assets.
The subprime mortgage crisis made stock BUMI price slumped from 8,000 to 400. At the time of the decline in long positions that have been taken previously difficult to be closed or liquidated. And if you want to take advantage of a decline than to protect the value of assets that have been purchased earlier by taking a short position for a moment-even more difficult to do. Because in Indonesia short selling is not allowed, so the hedging door (hedging) is almost closed.
Derivative instruments/ futures do not apply the tax cuts so that profits earned by the investor is a net gain from the transaction without a tax charge.
The ease of withdrawal of investment returns become one of the attractions of derivatives/ futures. Investors can use the advantage whenever the withdrawal process on the same day (unlike other investment systems). Derivatives risk management or professional futures derivatives allow investors to minimize the level of loss, but it gives unlimited profit potential. The liquidity of futures products is very high. The position can be opened/ closed at any time you want in the trade market generally move 24 hours. The added value of these derivative products to differentiate stocks, where each opening and closing of the transaction to be entered into the queue first in the market that are not open 24 hours, thus enabling the spike (gap) in the price.