The Basics of Futures Trading
The Basics of Futures Trading

The Basics of Futures Trading

futures trading

Futures trading is a complex but highly profitable 미국증시 선물 way to make leveraged bets on a wide range of commodities, currencies and interest rates. However, it can be a volatile market and is not for the faint of heart.

What is a futures contract?

A futures contract is a binding agreement between two parties to buy and sell an asset or security at a fixed price on a specific date in the future. These contracts are used primarily by hedgers and speculators. Hedgers use futures to protect against large price swings, while speculators take advantage of small changes in prices to earn a profit.

The Pros and Cons of Futures Trading for Investors

To trade futures, you need to open an account with a futures broker. Then you can start making trades online.

The first thing you should do is decide which underlying assets you want to trade. This will determine the type of futures contract you want to trade and which exchanges it should be traded on.

You should also learn about the different types of orders that are available to you. For example, you can choose to trade a Market-on-Close order, which means that your order will be executed at the close of a day session. This can be convenient for day traders who don’t want to hold their positions overnight.

Once you know which futures contracts you want to trade, you can submit an order online. Your broker will then route your order to the exchange where the futures are listed.

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