What Is Futures Trading Simply Explained Beginner S Guide
However, futures trading does come with higher risks and isn’t well-suited for beginner investors. Due to leverage, which means using debt or borrowed money for trading, investors risk losing more money – profits are amplified, but so are losses. This guide will explain the basics, including what futures are, how they work, and its benefits and risks. What are futures? Finally, futures trading is facilitated by futures contracts, commonly used by individual traders to make a profit or by corporations to lock in the prices of commodities they need for production and manufacturing....