Futures Trading

Futures trading involves contracts to buy or sell an asset, like commodities or financial instruments, at a predetermined price on a specified date in the future. Traders use these contracts to speculate on price movements or hedge against potential losses. If a trader believes prices will rise, they may buy futures; if they think prices will fall, they might sell futures. This market allows participants to manage risk and take advantage of price fluctuations, but it can also be risky, as prices can move unpredictably before the contract's expiration.