What are futures trading basics?

Futures trading basics will help you understand futures attributes. Contract Trades – Like stocks, futures are traded on an exchange. Futures markets are open 23½ hours per day, 5½ days a week. Each future has its own hours and can be easily traded nearly any hour of the day with good liquidity. Also known as futures trading basics.

What are futures?

What are 'Futures'. Futures are financial contracts obligating the buyer to purchase an asset or the seller to sell an asset, such as a physical commodity or a financial instrument, at a predetermined future date and price. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on...

Can you trade futures for profit?

Futures contracts can be traded purely for profit, as long as the trade is closed before expiration. Many futures contracts expire on the third Friday of the month, but contracts do vary so check the contract specifications of any and all contracts before trading them.

What are the advantages and disadvantages of futures trading?

These advantages include greater leverage, lower trading costs, and longer trading hours. 1. Futures Are Highly Leveraged Investments To trade futures, an investor has to put in a margin —a fraction of the total amount (typically 10% of the contract value).