Futures Trading

Futures trading involves buying and selling standardized contracts that obligate the trader to purchase or sell an asset at a predetermined price on a specific future date. These contracts cover various assets, including commodities, currencies, indices, and financial instruments. Futures trading is widely used for hedging risk or speculating on price movements, offering both opportunities and high risks. Traders benefit from leverage, allowing control over large positions with relatively small capital, but this also increases potential losses. Understanding market trends, margin requirements, and contract specifications is crucial for anyone engaging in futures trading.