Futures Trading

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.

Please remember that Contracts for Difference, FX and Futures are designed for active traders and involve leveraged transactions. This means that you only deposit a fraction of the full value of the trade. Consequently losses can quickly and substantially exceed you initial deposit and will require you to make further, possibly intraday, payments. CFD, FX and Futures should only be considered if you have significant investing experience and knowledge, a thorough understanding of the risks involved and if you are dealing with money that you can afford to lose. If you are in any doubt about the suitability of these products then you should seek independent financial advice.

Start Investing in Derivatives

Find out more about the TD Derivatives Service.

Read more

Risks

  • The value of your investments can go down as well as up. You may not get back all the funds that you invest.
  • Margin Products 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. Margin Products are not suitable for all investors.
  • You should fully understand the risks and seek independent advice if necessary.