Futures trading is a form of investing OnlineFuturesContracts where you buy a contract to deliver a commodity (like oil) or financial product on a specified date. You can use futures trading to profit from price fluctuations or hedge against them.

How to Trade: Get Started

If you’re thinking about making your first investment in the financial markets, consider futures. They’re a great way to gain exposure to a variety of products and are a popular choice for diversifying your portfolio.

How to Trade: Be Well-Informed

Futures are contracts that obligate buyers and sellers of certain commodities and financial products to take delivery of these goods at a predetermined price on a specific date. They’re typically traded on an exchange, which sets the standards for each contract.

The Impact of Interest Rates on Futures Trading

The liquidity of futures is ensured through standardization – setting a precise benchmark based on a number of factors, like the underlying asset’s current market clearing price. This makes it possible to trade futures at a higher margin than a spot market, which can be beneficial for traders who want to maximize their profits while minimizing their losses.

Using Leverage

Traders who use leverage are able to increase their returns with less cash outlay, but they’re also more likely to suffer losses if markets turn against them. This is because leverage can amplify losses to an investor’s notional value, which is the amount of money they own in a derivatives trade.