Buying Futures For Dummies -

Decide if you want to trade commodities (gold, oil), currencies, or stock indices (like the S&P 500) [1, 5].

Farmers or airlines who want to lock in prices so they don't get screwed by market swings [5]. buying futures for dummies

If the price moves against you even a little bit, you can lose your entire investment—and sometimes more—very quickly [1, 2]. 3. Hedgers vs. Speculators There are two types of people in this market: Decide if you want to trade commodities (gold,

When you buy a futures contract, you aren't getting the physical item delivered to your house today. You are agreeing to a price for a transaction that happens later [2, 5]. You are agreeing to a price for a

Futures are high-octane trading. They offer the potential for huge wins with small amounts of money, but they are significantly riskier than buying regular stocks.

You buy a contract because you think the price will go up .