| Historically low commodity prices are beginning to lure investors with little to no commodities experience into gold, oil, copper, natural gas and even agricultural products like grains. Given their familiarity with stocks, many are flocking to commodities ETFs, but sometimes what's familiar isn't necessarily optimal. I believe players who are willing to educate themselves about futures markets and the discipline involved in limiting leverage can enjoy far-more-efficient commodities exposure through futures trading.
Here are a few points to consider when choosing between commodities ETFs or futures: You Don't Have to Use Futures Leverage: You might be told that largest advantage to trading futures is the leverage -- or you might be told that this leverage is the biggest disadvantage. It all depends on whom you're speaking to...............................................Full Article: Source
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