Futures Markets 101

Let’s Learn Futures Markets 101

Futures started a long time ago with simple trades but has grown to be a gargantuan business today.

What are the types of Derivatives?

Futures are defined as an agreement to buy or sell an underlying commodity in the future at a price that is set now. Their value depends on the underlying asset they are derived from. Commodities in futures may include physical commodities, financial instruments and foreign exchange and stock indices.

The Hedgers and Speculators

Hedgers try to mitigate the uncertainty of markets while Speculators thrive on the uncertainty. Speculators prefer to profit from the risk that the Hedgers are protecting themselves against.

Advantages of Trading Futures

With Futures, you can not only gain big. You can also gain bigger profits if you are willing to take more risk.

How Does One Get Started?