Futures trading can be an excellent 미선물 way to diversify your portfolio and get direct exposure to underlying commodities. However, it’s important to understand how futures work before you start trading.

Basically, a futures contract is an agreement between two parties that they will exchange an asset or good at a set price on or before a certain date in the future. The agreed-upon value is determined by the current market price of the underlying asset.

How to Create a Futures Trading Plan and Stick to It

A trader can go long on a futures contract, which means they believe the underlying asset will appreciate (go up) or short, which means they believe it will depreciate. They can also buy or sell a contract before its expiration to lock in profits or limit losses.

There are two main types of traders: hedgers and speculators. Hedgers use futures contracts to manage price risk for a product they are producing or selling. Speculators, on the other hand, use futures contracts to make money by predicting their movement. Speculators often borrow money to trade in the futures markets, which magnifies small price movements into huge gains.