Futures trading is an important part of the financial world. It allows investors to trade a range of products, including currencies, commodities and interest rates.
How It Works
A futures 나스닥 선물거래 contract obligates one party to purchase a good or commodity at a fixed price on a specific date, and another party to deliver it at that same price. The contracts are often used to hedge against market risk.
There are two main types of futures traders: hedgers and speculators. Hedgers seek stability and predictability for their businesses, whereas speculators are in it to make money.
Hedgers are typically large companies or institutions, while speculators are usually individual traders, portfolio managers and hedge funds.
The History of Futures Trading and Its Evolution Over Time
Hedgers use futures contracts to hedge against changes in the prices of underlying products, and may enter long or short positions as a way to offset their losses or maximize their gains.
Speculators use futures to bet on the prices of underlying products, and normally close their long or short positions before the expiration and delivery dates.
Leverage is an essential ingredient of futures trading, as it allows investors to control a larger amount of contracts with a smaller capital investment. This leverage can be a significant advantage for investors when they earn a profit, but it can also amplify their losses if markets turn against them.
Futures trading requires careful planning and discipline, as leverage can amplify losses to levels far beyond what you initially invested. Before establishing a futures position, clearly define both a profit objective and an exit plan.