Futures Trading 101

futures trading

Futures trading can be a great way to profit from market movement. The key is to learn the markets and how to place an order with your broker.


A futures 미국 선물지수 contract is a written agreement between two parties to buy or sell a specific quantity of an asset or security at a specified price by a pre-determined date. The contracts typically cover a broad range of commodities and financial instruments.


The futures market is used by companies, farmers and individuals to hedge risk in a particular commodity or asset. For example, an oil producer may sell a futures contract to protect against price fluctuations in the future. Likewise, an airline company will buy futures to lock in a set price for jet fuel that won’t fluctuate so much.

The Risks Involved in Futures Trading and How to Manage Them

A trader that uses the futures market to speculate on price movements is considered a speculator. They borrow money to magnify small price moves to create potential profits that justify the investment.


Futures contracts are traded on exchanges like the Chicago Mercantile Exchange and the New York Board of Trade, among others. These exchanges offer many different types of futures products that span a wide range of assets and sectors.


Most futures contracts expire at the end of a certain month, so you need to be aware of how long you want your position to last. This can be tricky for a novice trader who doesn’t understand how to roll over or close positions in a timely manner.

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