Futures trading is an investment strategy that can help you profit from the price of commodities, interest rates, currencies and indexes. It’s also a way to hedge your portfolio.

How It Works

The futures market 세계선물지수 is centralized, meaning that it trades on exchanges like the Chicago Board of Trade or Mercantile Exchange. Traders can access these markets electronically through a broker.

Commodities: Speculators buy and sell futures contracts on commodities such as oil, natural gas, coffee, wheat, sugar and precious metals.

How to Use Options to Hedge Your Futures Positions

Currency: Traders or multinational companies may use futures contracts on foreign currency to speculate or hedge their exposure.

Indexes: Investors and traders can use futures to invest in indices such as the S&P 500.

Precious metals: Investors may use futures contracts on gold and silver to hedge their investments or speculate on the price of these precious metals.

Risks: The risks associated with futures trading include not controlling the underlying asset, the risk of losing money due to a decline in the market and the lack of control over prices.

Leverage: The use of leverage can magnify returns, but it can also wipe out an investor’s capital quickly.

Expiration: Every futures contract has an expiration date, so it’s important to set up an exit strategy.

How to Trade:

To get started, open an account with a futures brokerage that supports the markets you want to trade. Many futures brokers will ask questions about your experience, income and net worth to determine the amount of leverage you can use and the size of your initial margin.