What is Futures trading?
A Future is a contractual agreement to buy or sell a particular commodity or financial instrument at a pre-determined price on a specific date in the future.
Futures contracts can derive from a variety of assets, from traditional commodities like corn, wheat, and orange juice to different asset classes, like government bonds, interest rates, energies and stock indices.
Futures contracts detail the quality and the quantity of the underlying asset; they are standardised to facilitate trading on a Futures exchange.
Trading Futures can carry a high degree of risk to your capital. Losses can quickly and substantially exceed your initial investment. You may need to make further margin payments. Futures trading are not suitable for all investors. You should fully understand the risks and seek independent advice if necessary.