Futures trading is a type of investment or speculation in which participants agree to buy or sell an asset (the underlying asset) at a predetermined price and date in the future. These agreements, called futures contracts, are standardized contracts traded on exchanges. Here's an introduction to futures trading, including its basics and benefits: Basics of Futures Trading: Futures Contracts: A futures contract specifies the quantity, quality, and delivery date of the underlying asset. Common underlying assets include commodities (such as oil, gold, or wheat), stock market indices, currencies, and interest rates. Long and Short Positions: In futures trading, participants can take either a long position (agreeing to buy the asset in the future) or a short position (agreeing to sell the asset in the future). Margin Trading: Futures contracts typically require a margin deposit, which is a fraction of the total contract value. This allows traders to control a larger contract value with
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