Future Trading
A Futures contract is a derivative contract where two parties agree to buy or sell an underlying asset at a predetermined price on a specified future date.
Future Trading
wo parties agree to buy or sell an underlying asset at a predetermined price
Shares
- Can hold indefinitely
- Usually full purchase value
- Lower leverage
- Can be suitable for long-term investing
Futures
- Has an expiry
- Margin-based
- Higher leverage
- Mainly used for trading/hedging
Easy Way to Remember
Buy Futures → You expect price to rise
Sell Futures → You expect price to fall
Futures trading is high risk because leverage can magnify losses. Always use appropriate position sizing and risk management.